Divorcing and underwater: now what?
Real estate advice from Bob Massi
- Duration 3:27
- Date Jan 31, 2013
Real estate advice from Bob Massi
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No one coming out I want.
-- my money.
So we paint.
-- may have only been a movie but the -- premise of the war of the roses a divorcing couple battling over their home.
Is -- some measure of truth that the family home is always been a hotly contested issue a divorce proceedings.
But in a struggling housing market where -- estimated seven million homes are under water that's no longer the case so what do you do.
Bob -- -- Fox's legal analysts and real estate expert Bob -- -- delegates before how do you handle it.
He used to be bright and as you said there was equity in homes and that was a bargaining tool for many people in divorce actions but that's changed dramatically.
Because of the fact that the house is under water.
So what do you do you divided -- Well a lot of times what happens is it actually becomes a bargaining tool in this way let's say mom wife and children remain in the home.
And the and they ultimately basically stay there until there's a foreclosure sometimes in the board's actions in talked with Stanley lawyers because there's no payments being made.
But it excuse me during that period of time it's a negotiation pulls it looks stay in there who gets foreclosed on.
You're not paying any -- you know paying a mortgage in this case let's say the man has to -- about give his own apartment his own house.
He's paying so believe it or not even though could be underwater.
It's still negotiate images -- take any money out of it anymore ironically that could be one of the -- get -- -- -- you so worried about your house and financial reasons but let's move launcher another question is what about after -- one of the spouse has filed bankruptcy and includes the underwater house.
You know Brian this is a major problem a lot of people believe that let's let's assume that the husband has -- heeded the house to the wife.
Many times they believe that Wallace's state needed the house are still not responds with a mortgage let's assume one of them file bankruptcy will that debt is gone.
So if there is a foreclosure.
The other person that still remains on that mortgage who didn't file bankruptcy if there is a foreclosure.
Can't infect still be exposed that the lender would pursue it.
It deficiency so that happens quite a bit after divorce actions and our question of mystery what -- the house as a result of the divorce.
Is quit is quick claimed or transferred to the spouse living in the house does that erase the debt.
To the spouse no longer living there you following that -- Yep for sure in other words I give the title to that person -- life like that divorce from.
She now has title.
Obviously not their thinking that life is good no more responsibility.
What's true I had no responsibility -- -- 08 do's and things like that.
That has again -- to that mortgage.
I'm still stop.
If there is a foreclosure.
I'm still responsible I could still be held -- your credit still affected you know I banned from this marriage therapist let's try to work it IE here hey let's talk about just seven -- coming up right yet.
Yet next Thursday LB in Fort Myers, Florida.
I'm going to be going to seminar broadcast live on FOX & Friends.
From 6 AM eastern time to 9 AM it's free at the yacht club in Fort Myers go to the website FOX & Friends dot com.
Registered three look forward to seeing everybody answer a lot of questions and talk about what's going on minerals that market I've -- should be fun thanks so much of -- -- next week about it.