Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Divorcing & Wife Wants To Stay In House
October 3, 2008 at 2:03 pm #5175
A couple is divorcing. They live in a community property state. The mortgage is in the husband’s name but the title is in both names. She wants to stay in the house and currently cannot refinance the house. There is minimal equity in the house.
Naturally the husband wants the mortgage out of his name but knows he has to wait. The way some divorces go around here, if the wife can not obtain refinancing, she keeps the house and the mortgage stays in the husband’s name. He is just SOL.
He is willing to let her stay for several years until she can obtain financing, but if she does not, then he wants her out and the house sold.
To me the NEHTrust is perfect. Are there any special details that should be mentioned to the parties or added to the agreements?
KentOctober 3, 2008 at 2:13 pm #27289
alan dale grossMember
If, she is awarded the house, his loan could be Foreclosed on, if she defaults.
Does he want her there, if he has to pony up the payments ?
Can she afford whatever kind of loan there is on it, to stay there ?
Is it going to adjust ?
Can she / Will she be able to Stay ?
Conversely, She needs to know that she would face Eviction, in a Default, if the property is in an EHTrust.
He or they would then have an Investment Property, for you and/ or them to put an RB into, but she is out.
The EHTrust would allow for both of them to Benefit, from their intial “Biggest Investment” that they both were involved in, which is Fair.
They can weight it, along with whatever other non-expert or expert
special details that should be mentioned to the parties or added to the agreementsOctober 3, 2008 at 2:37 pm #27290
Thank you for the talking points.
He does not mind her staying there. However if she defaults, he could not make the payments on top of his living expenses.
Because she will have primary custody of the children, it would be very difficult to evict her w/o going through the foreclosure process and that is his concern.October 3, 2008 at 2:44 pm #27291
alan dale grossMember
Eviction may be exacted as a Defaulting Co-Beneficiary Resident, in an EHTrust.
No Foreclosure needed.
She needs to be clear and comfortable, with that and he would be in a more comfortable position that way, than he is thinking now, as long as everyone gets an understanding of where they are at and want to still come on board.
The “have your cake and eat it, too” idea, of “staying without paying” needs to go out the window.
It isn’t in the EHTrust Cards.
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