I have been asked by any clients, should I of course try to keep the house???
Now, the sass to this request is ...It depends! In light of our mortgage accident it is extremely leading to decree the true benefit in keeping your home. But with new loan modification programs that are in planning stages now, it may be potential to lower your mortgage payments.
Mortgage
For starters, please ask yourself, "Can I afford to keep this house?" Should my spouse leave today could I not only buy out their interest (which will increase the mortgage payment) but can I afford the taxes, assurance and also the household bills, gardener, water, trash, etc?
Also consider, "Why Do I Want to keep this house?" Are you tied to the house emotionally? Do you wish for your children to reside in a stable environment? Do you work close to home? Are your kids doing well in school and are the schools good?
The truth of the matter is, a lot of homeowners do not have much equity in their home. For many the loan amount exceeds the equity and depending on finances, you and your spouse may be behind with payments. If this is the case and you do not have many emotional ties to the home, you should reconsider other options.
In today's market, you have options such as a "Short Sale" if something must be done expeditiously. ** I just hosted a New Pod cast with Martha Shanks concerning asset Options for Today...Please go to my Child Custody and reserve site and click on "Podcast" for more information. If you don't have to swiftly decree the request concerning the house, and if you qualify (see other postings in this blog) you could get help with a loan modification.
Next, if there is equity in the home, please consider, "Can I of course afford to 'buy out' my spouse's interest?" Unless the parties decree otherwise, if you decree to keep the home, be prepared to "pay" for your spouse's share of equity in the home. This will most likely increase your mortgage payments. Also, because of the "freeze" in our lending markets, you may face some strangeness in obtaining a loan.
Also, consider, "Can we continue to both own the asset until the market gets better?" This will all depend on your relationship with your spouse and your goals. If there is some equity in the home, selling may be an option, any way if this is not the case, it may be worth considering. This may mean the spouse remaining in the home will continue to pay the mortgage, while the "out spouse" finds someplace else to live. any way with this option, you may be in a better position to sell your home at a later time. This also opens the door to a loan modification, as one of the requirements is a drop in house income.
disjunction and Loan Modifications
