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My husband and I decided to divorce. We are currently still living in the same home amicably. We assumed from talking to a realtor that we would only make 20,000 in profit. I told my husband that we could sell the house and split the profit or he could buy me out of my share. He said he wanted to keep it and offered me 7,000.00 to walk away from it. Our house could sell for 120,000. We owe 98,000.
Now right now, I don't have a contract for employment lined up for next year so I'm a little nervous about what the future holds. I'm upside down on my car and I thought that I could use the money to refinance my car for a more affordable payment.
I'm just not sure what financial choices would be good ones at this point. Please help.I want to make a smart choice.
So the house could sell for $120,000 but it might sell for less and there would still be realtor commission and other costs to pay so you wouldn't get anything like $120k net. He is offering you a cash settlement and then he is assuming all the risk with the home. You would be walking away with cash and no risk. So it isn't such a a bad deal. Ask for $10k and be willing to split the difference at $8.5k.
I originally asked for 10k but since he had to take a 401k loan, he would be liable for the penalty as well as the repayment of the loan. So I agreed on 7k. Do you think I should sell my car or put the money down on the car and refinance?
I think the $7000 is fair. If you used a real estate agent to sell, s/he will charge you at least 5% to sell it (or $6000) plus any additional fees charged by the title company, etc. Your profit wouldn't be $10,000. 120K-6K=14K/2=$7000.
FYI--most people are "upside" down on cars. Cars loss value immediately and continuously.
Because I'm more interested in being fair than greedy, honey. I can always re-negotiate. No money has exchanged hands yet.
That's good if he's interested in the same thing. I don't think $7,000 is way low, but obviously that depends on what he put out from his 401K. Quantify that and factor it in. If you did that already and that's how you arrived at 7 and the math works, the it's 7.
I think the $7000 is fair. If you used a real estate agent to sell, s/he will charge you at least 5% to sell it (or $6000) plus any additional fees charged by the title company, etc. Your profit wouldn't be $10,000. 120K-6K=14K/2=$7000.
FYI--most people are "upside" down on cars. Cars loss value immediately and continuously.
Thanks. That's what I wanted to know. I'm not trying to rip anyone off.
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