What's gonna happened to the the property when we divorce?

Question

We're getting divoce. We bought a house together, and now since the price lower than when we bought it, we don't know what to do. If we sell, we still owe some money to the bank. But we both don't want to keep the house either. any suggestion? Can we just return it to the bank without ruin our credit score? Please help...

Answer 1

If you can't agree what to do, let the court decide.

In order to save your credit, you will need to sell the house and pay the difference, if necessary.  Where I live, if your name is on that house, payment responsibility is still there even if you sign a quit claim deed.  Get out from under it while you can.

Answer 2

You will both be held liable for the money left over to pay to the bank. So, be prepared to split the negative equity 50/50.

If you let the house go into foreclosure, it will affect both of your credit scores if the house mortgage is in both names.

You are kinda of stuck between a rock and a hard place.  Watch some TLC channel shows like "Sell this House." and get pointers on how to sell the house and try to break even.

Answer 3

The answers on this will have to come from your mortgage company I would think.  Give them a call. Tell them your situation.  See what they have to offer.

Answer 4

Sure you can sign it right over and lose everything you invested, or you can sell and try to recover what your about to lose.  

Answer 5

Keep the house for now and rent it out.  Sell it later when the market bounces back.

Answer 6

Well it depends on what state you live in.  You may have to sell it.  If you have kids the custodial parent may live in the house till the children are 18 then they woud have to pay the other for their half of the house

Linda

Answer 7

Perhaps you can rent the home to pay for the morgage?

Answer 8

If you can't sell it, why don't you both consider renting it out to tenants while you both move out?  At least it will generate some income and will help pay for the mortgage.  When the property value increases again, you can then consider selling it.

Or...take the loss, sell it as it is and split the difference you owe the lender.