Gabriel Cheong, a lawyer in Massachusetts, has a good blog post about the options for divorcing couples when their house is underwater (or in other words, worth less than the amount owed on the mortgage).
He describes (in greater detail than here) 6 options:
1) Live there together until one can afford to move out or refinance.
2) Continue to own the house with one person living there.
3) Refinance.
4) Short sale.
5) Foreclosure.
6) Work with your lender to modify your mortgage.
Another option is for both parties to file for bankruptcy. This would in all likelihood be very messy but if saving your house is a priority, it might be possible under certain situations. You should consult with a bankruptcy lawyer to see if this might be helpful for you.
The other idea that comes to mind, of couse, is to dismiss your divorce or not file for divorce until you can get your home situation straightened out.
Clearly, none of these are ideal choices.
Check out Gabriel’s blog at Massachusetts Divorce and Wills Lawyer for more helpful ideas.
now a days it is vital to have a full understanding of divorce laws. Nearly 40% of all marriages will end in a divorce. Therefore, it is very important that you know the ins and outs of the laws. Divorce laws do vary from state to state so it is important that you check with the laws for your particular state
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Posted by: David hogard | November 06, 2009 at 07:01 AM
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Divorce Lawyer
Posted by: Divorce Lawyer | January 08, 2010 at 10:30 AM