Recently, me and my wife have dicided to devorce. We have debt of our home, which has a 1st & 2nd mortgage of $647,000 and $120,000(appraised at $850,000), a second home being used as income property we’re renting with about a $400 negative return with mortgage balance of $284,000, and a peice of vacant land which we were hoping paid all of our debt off by subdividing it into 8 resedential cul-de-sac lots and selling it. So far, we’ve got the land to the piont were we have an Approved Tentative Tract Map. We only owe $100,000k on the land.
Well, the devorce was unexpected to me, but now I’m stuck with the house with the 1st and 2nd, and she want the income house. The land, we want to sell and pay-off debt and I’m hopeing to get roommates to help cover the mortgage, or sell it.
Any suggestions or stratagies anyone? :help :flush
Where do you live? What is the market like there?
SO is your wife giving you the home and the rest of the equity?? So she wants a home that you owe 285K a month and is lossing $400 a month. Not much gain for her there.
Best bet, get the land subdivided and sold fast. pay off the properties and then split assets. You can probably still finalized your divorce plans on this and do the work and once completed divorce is completed.
Honestly, you do not want to turn the rental home to her because I am betting your name is on the mortgage too and guess what, your name can not come off unless she refi or you sell it. So this puts your credit at risk. (Remember many property owners who decide to let a rental go into foreclosure will just pocket the rent money for 6-10months and have some nice income while bank takes home)
Also I can tell you can not handle the 775K mortgage alone which is always a problem. Do not know what kind of loan you have, but I advise you to call your mortgage company and give them a heads up and explain the situation and see if they can do something short term. You never know…