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In the middle of a divorce. Neither one of us can afford to pay rent somewhere else AND continue to pay the mortgage. Based on Zillow the house is worth almost 80k less than what we owe. We have no other investments or savings that could come close to covering that difference. Both of our vehicles are over 10 years old and we need those to get to work. We don't have a divorce attorney because we are trying to do this in the most agreeable fashion we can AND not have to pay attorney fees.
I understand this is the internet and the risks of following any advice found here but, I don't even have a clue where to start. Anyone have any advice? I dont want to call the bank and talk to them without knowing more about my options first. I started this in the NJ forum because i know the laws/options are different in every state.
In the middle of a divorce. Neither one of us can afford to pay rent somewhere else AND continue to pay the mortgage. Based on Zillow the house is worth almost 80k less than what we owe. We have no other investments or savings that could come close to covering that difference. Both of our vehicles are over 10 years old and we need those to get to work. We don't have a divorce attorney because we are trying to do this in the most agreeable fashion we can AND not have to pay attorney fees.
I understand this is the internet and the risks of following any advice found here but, I don't even have a clue where to start. Anyone have any advice? I dont want to call the bank and talk to them without knowing more about my options first. I started this in the NJ forum because i know the laws/options are different in every state.
I would recommend renting out the property. Find yourself a reputable realtor who will work with you on the commission and background check of the tenants. This will give you a chance to get back on your feet and hopefully recoop some of your money.
Zillow is nice for a ballpark idea, but can be inaccurate. The first step I would take is to talk to a good local realtor about your house's value vs. current comps.
If there is any way to cover the debt, I would usually advise that, because the alternative will kill your credit for a long time. But sometimes there isn't a better option.
Absolutely talk to a Realtor, one that you trust and knows your market. Not only will they be able to tell you what you will be able to sell your house for but also guide you through other options like a "short sale". A short sale means that you and the bank come to an agreement on how much you can get for your house, you sell it for that, avoid foreclosure and the balance of debt is forgiven. Chances are it wont be the whole amount you are short but it won't be the full difference either.
If you go the short sale route you will have to bring your bank into the picture, since they ultimately have to approve whatever price you come up with.
Getting an appraisal from a realtor is OK, but remember that they have a vested interest in getting the listing. Consider using an independent real estate appraiser. They are listed as such in the yellow pages. Well worth the money as they don't have a dog in the fight as the saying goes. BTDT twice.
Short sale is your best option, if you are divorcing you probably don't want to deal with being a landlord. Keep in mind short sale would kill credit for a few years but better than walking away.
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