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Post by The Walk of the Penguin Mich on Feb 10, 2021 15:41:32 GMT -5
I fail to understand how being married would protect the person who put down more. Would their financial settlement reflect the fact that one contributed more to the down payment? I only know a smattering of real estate law. I know nothing about family law. Having proof that you put down a down payment gets taken from the sale if you are married. So the woman puts down $100k on a $500k house. They buy together married, live there 10 years. The house sells for $800k, owe $300k. After expenses, first $100k goes back to the woman and the remaining balance gets split equally after the mortgage balance is paid. My sister just went through this in her divorce.
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haapai
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Post by haapai on Feb 10, 2021 16:08:00 GMT -5
My Lord! That's a terrible 10-year return on $100K! On the other hand, it's much better than splitting the proceeds from the sale 50/50.
Was this a negotiated financial settlement or something ordered by a judge?
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Post by The Walk of the Penguin Mich on Feb 10, 2021 16:17:27 GMT -5
My Lord! That's a terrible 10-year return on $100K! On the other hand, it's much better than splitting the proceeds from the sale 50/50.
Was this a negotiated financial settlement or something ordered by a judge? That’s the way it works. This is how proceeds were split on their house. Others may split it differently, but this is the way they dealt with one person providing the down payment from savings from pre marriage. In my sisters case, she pulled it from the IRA rolled over from her first job.
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Post by Deleted on Feb 10, 2021 16:34:34 GMT -5
My Lord! That's a terrible 10-year return on $100K! On the other hand, it's much better than splitting the proceeds from the sale 50/50.
Not horrible- she put down $100K and 10 years later got back that $100K plus 50% of the net proceeds, or another $200K ($800K-$300K mortgage minus her original $100K). That's a tax-free return of 12% annually. Of course you could argue that her Ex got $200K and put nothing down (but may have contributed to the mortgage during those years). Sometimes you agree to what you have to even if it's not ideal just so you can move on.
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haapai
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Post by haapai on Feb 10, 2021 17:32:19 GMT -5
My Lord! That's a terrible 10-year return on $100K! On the other hand, it's much better than splitting the proceeds from the sale 50/50.
Not horrible- she put down $100K and 10 years later got back that $100K plus 50% of the net proceeds, or another $200K ($800K-$300K mortgage minus her original $100K). That's a tax-free return of 12% annually. Of course you could argue that her Ex got $200K and put nothing down (but may have contributed to the mortgage during those years). Sometimes you agree to what you have to even if it's not ideal just so you can move on. My bad or, more specifically, my bad eyesight. I misread WPM's post and only saw $300K proceeding from the sale, not the $500K that better eyesight would have caught. 12% tax-free ain't bad.
ETA: I kinda dare anyone out there to figure out what the ex-husband's ROI was if you assume that he paid half of the mortgage.. I think that's reasonably doable given the info that has been included and a quick scan of where interest rates have been in the last decade and selling costs of 6%. Ugh! Refis. No, it's not that doable.
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Post by Deleted on Feb 10, 2021 17:37:56 GMT -5
This may have been answered but what happens when she passes away and the dead beat kids that are livng there won't move voluntarily? Are they considered squatters and will you have to take legal action to evict them. Do they even know who the house belongs to? Do they think their mother actually owns it? Just wonder what she has told them. And no I don't agree with them living there just wondering. Regardless, The Walk of the Penguin Mich I admire you for honoring your Father's wishes. Kids know we own the house. This is why I really want to get the house sold while she is still alive. She has had 2 of her daughter die in 2020, so this is why I have not pushed for this. I will be pushing to get it on the market this spring/summer. I am missing something. I am not trying to be snarky, I promise. In a couple of posts you talk about how you promised your father. In others you talk about selling it as soon as possible.
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Post by The Walk of the Penguin Mich on Feb 10, 2021 18:19:39 GMT -5
Kids know we own the house. This is why I really want to get the house sold while she is still alive. She has had 2 of her daughter die in 2020, so this is why I have not pushed for this. I will be pushing to get it on the market this spring/summer. I am missing something. I am not trying to be snarky, I promise. In a couple of posts you talk about how you promised your father. In others you talk about selling it as soon as possible. SM has made noises about selling as well, because she is 7 miles out of town and the upkeep is a larger responsibility than she wants right now. Living out there, particularly in winter, is difficult. While I’m not about to sell it out from under her and kick her out, I’m not going to make a case for her to continue to live there anymore. Between the taxes (if she paid them) and insurance, the cost of living there is no more than $200/mo. Add in all utilities and she’s out about $500/mo She is going to be hard pressed to find someplace cheaper in town. She told me she’s got $3600/mo coming in (with all medical care covered) so it really isn’t unaffordable for her.
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Bonny
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Post by Bonny on Feb 11, 2021 10:34:56 GMT -5
I am missing something. I am not trying to be snarky, I promise. In a couple of posts you talk about how you promised your father. In others you talk about selling it as soon as possible. SM has made noises about selling as well, because she is 7 miles out of town and the upkeep is a larger responsibility than she wants right now. Living out there, particularly in winter, is difficult. While I’m not about to sell it out from under her and kick her out, I’m not going to make a case for her to continue to live there anymore. Between the taxes (if she paid them) and insurance, the cost of living there is no more than $200/mo. Add in all utilities and she’s out about $500/mo She is going to be hard pressed to find someplace cheaper in town. She told me she’s got $3600/mo coming in (with all medical care covered) so it really isn’t unaffordable for her. I wouldn't have a problem selling the house if she's not holding up her end of the bargain.
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Miss Tequila
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Post by Miss Tequila on Feb 11, 2021 11:19:15 GMT -5
I am missing something. I am not trying to be snarky, I promise. In a couple of posts you talk about how you promised your father. In others you talk about selling it as soon as possible. SM has made noises about selling as well, because she is 7 miles out of town and the upkeep is a larger responsibility than she wants right now. Living out there, particularly in winter, is difficult. While I’m not about to sell it out from under her and kick her out, I’m not going to make a case for her to continue to live there anymore. Between the taxes (if she paid them) and insurance, the cost of living there is no more than $200/mo. Add in all utilities and she’s out about $500/mo She is going to be hard pressed to find someplace cheaper in town. She told me she’s got $3600/mo coming in (with all medical care covered) so it really isn’t unaffordable for her. It really makes me happy that you are honoring your dads wishes and leaving it up to SM to leave. So many people would have sold the house out from under her. I would have allowed her to stay there but the minute it started costing me money to pay the bills, she and her deadbeats kids would have been gone. The fact that you haven't speaks volumes of your character.
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dondub
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Post by dondub on Feb 11, 2021 15:24:06 GMT -5
My smart unmarried clients had agreements drawn up that covered all the financial issues, especially regarding the paying of the mortgage. Then there were the others. Good luck.
Part of me thinks she should just run and find a new everything. She still is an owner. If he doesn’t like paying the mortgage entirely by himself he can figure out a way to buy her out. If they needed her income to qualify for the loan it’s an even bigger problem.
She needs to consult an attorney.
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NastyWoman
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Post by NastyWoman on Feb 11, 2021 15:48:58 GMT -5
She does need a lawyer. And, unless she is in physical danger, she should stay until this is settled. She should get her down payment and half of the home appreciation IMO. And she needs to accept that the relationship she was dreaming of has never, does not now, and will never exist.
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dondub
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Post by dondub on Feb 11, 2021 18:50:59 GMT -5
She does need a lawyer. And, unless she is in physical danger, she should stay until this is settled. She should get her down payment and half of the home appreciation IMO. And she needs to accept that the relationship she was dreaming of has never, does not now, and will never exist. Getting cash out may not be easy. Dirtbag may not qualify for the correct loan amount. He could try a HELOC. He may have problems making the payment without her help. He sounds a bit nutty.
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Miss Tequila
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Post by Miss Tequila on Feb 11, 2021 19:01:12 GMT -5
She does need a lawyer. And, unless she is in physical danger, she should stay until this is settled. She should get her down payment and half of the home appreciation IMO. And she needs to accept that the relationship she was dreaming of has never, does not now, and will never exist. I’m going to disagree. I lived in a house with my ex for 2 months and 4 days waiting for the closing on my house. Let me tell you, no amount of mo he is worth the hell I went through. I walked from everything, including child support, just to make a break and not prolong it. Best thing I ever did I agree that this woman should fight to get her deposit back and half the appreciation. If this is a stretch financially for her, I recommend she bails. I say that having no idea of her financial situation. All I know is the last thing I wanted to be saddled with was a large mortgage payment.
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Post by Rukh O'Rorke on Feb 11, 2021 21:25:43 GMT -5
She does need a lawyer. And, unless she is in physical danger, she should stay until this is settled. She should get her down payment and half of the home appreciation IMO. And she needs to accept that the relationship she was dreaming of has never, does not now, and will never exist. Getting cash out may not be easy. Dirtbag may not qualify for the correct loan amount. He could try a HELOC. He may have problems making the payment without her help. He sounds a bit nutty. but he could take her credit into the toilet with nonpayment - and even if he pays - she may want another house and can't buy. she needs off the mortgage.
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Miss Tequila
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Post by Miss Tequila on Feb 11, 2021 23:39:24 GMT -5
Getting cash out may not be easy. Dirtbag may not qualify for the correct loan amount. He could try a HELOC. He may have problems making the payment without her help. He sounds a bit nutty. but he could take her credit into the toilet with nonpayment - and even if he pays - she may want another house and can't buy. she needs off the mortgage. And she could do the same to him. Whoever will wind up with the house needs to buy the other one out. If neither can afford it, they need to sell it and move on
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dondub
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Post by dondub on Feb 11, 2021 23:43:15 GMT -5
Getting cash out may not be easy. Dirtbag may not qualify for the correct loan amount. He could try a HELOC. He may have problems making the payment without her help. He sounds a bit nutty. but he could take her credit into the toilet with nonpayment - and even if he pays - she may want another house and can't buy. she needs off the mortgage. . Very difficult.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Feb 12, 2021 8:53:00 GMT -5
but he could take her credit into the toilet with nonpayment - and even if he pays - she may want another house and can't buy. she needs off the mortgage. And she could do the same to him. Whoever will wind up with the house needs to buy the other one out. If neither can afford it, they need to sell it and move on my comment was specifically directed at the advice that she just walk away and let him have this house without getting off the mortgage - so in that sense it is not an equivalent.
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Miss Tequila
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Post by Miss Tequila on Feb 12, 2021 9:00:13 GMT -5
And she could do the same to him. Whoever will wind up with the house needs to buy the other one out. If neither can afford it, they need to sell it and move on my comment was specifically directed at the advice that she just walk away and let him have this house without getting off the mortgage - so in that sense it is not an equivalent. Gotcha
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dondub
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Post by dondub on Feb 13, 2021 17:33:21 GMT -5
And she could do the same to him. Whoever will wind up with the house needs to buy the other one out. If neither can afford it, they need to sell it and move on my comment was specifically directed at the advice that she just walk away and let him have this house without getting off the mortgage - so in that sense it is not an equivalent. First she would be getting away from this asshole. Secondly she would be creating some leverage for him to either A. Sell, B. Refinance if possible (probably not) or C. Allow her to remain in the home as a rightful owner paying her share while the house is sold. That house needs to be sold...
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