I am going through a divorce and my soon to be Ex-Wife is unwilling to help with monthly payments or come up with part of our upside down home. We owe Countrywide $352,000 on a first, and $85,000 on the second for a total of $437,000. Our total monthly payments for a 30 year loan is $3700.00 including impound.

The home is appraised at $400,000. If I sell it, we’ll net about $370K after closing costs and commissions so were short about $67,000 that neither me or my ex can come up with.

I cannot afford the $3700 by myself. Up to this point I have not been late on payments but beginning December 1, I cannot make the payment.

I’ve heard several terms on the research I’ve done:

Short Refinance, Deed in lieu, and foreclosure. Can anyone provide information regarding the viability on these items? I understand a short refinance will forgive part of the debt and refinance the remaining balance. How will each affect credit?

Thanks for the help,


I don’t know about a short refi. If you are willing to sell the house, you are a perfect candidate for a short sale. It’ll save your credit compared to foreclosure & deed in lieu of foreclosure. What State are you in?

I’m in California. Can I do a short if I’m not behind in payments? Should I call the bank and let them know that a default in payments is inevitable?

Email me. I know someone in CA that works for a company that can help you.