Hi folks,
I was divorced several years ago in Chester County, PA. It was a reasonably amicable, mediated divorce. As part of the divorce agreement, because my ex-wife had little income, we put in place a plan to allow her to stay in the house for a reasonable amount of time. Specifically, I remained on the home mortgage, and we put in the agreement that once per year, for five years, she has to attempt to assume the mortgage or refinance in her name to get me off of the mortgage. If, after the fifth try, she cannot get the house in her name, then she must immediately list the house for sale.
The fifth try is due by August 1st of this year, and the house is still in both of our names. We have two children ages 12 and 17, and have generally enjoyed a reasonable post-divorce relationship, so I have an interest in at least keeping things from blowing up. However, my financial life has basically been on hold for five years, because I have been unable to move forward with purchasing another property or taking out loans, because the home loan is still in my name. So, I really need this to get resolved per our agreement.
She works at a low-income job, as does her second husband of three years, and we purchased the house at the market peak. So while it isn't exactly under water, I doubt she is going to be able to afford the amount remaining on the loan. (~$360k)
So, my fear is that she won't be able to assume the mortgage, and that she will delay or try to avoid it, or for example insist that it cannot be listed until improvements are made. The specific language in the agreement is as follows:
"The said premises shall be immediately listed for sale at a price acceptable to both parties provided that in the event they are unable to agree upon a price, then the price shall be fixed by a licensed real estate broker selected by both parties. In the event the parties are unable to select a real estate broker, they shall each select a broker who, in turn, shall select a third broker who shall determine the price. The broker shall also advise the parties whether the listing price shall be lowered in the event the premises are not sold within a reasonable period of time. The parties shall cooperate and agree to a reasonable reduction in the listing price. Thereafter, the price shall not be lowered unless by agreement of the parties or order of the court. The house is to remain on the market until it is sold to ensure that Husband's name is removed from the mortgage and title. In the event that the premises need improvements, whether capital or not, during the pendancy of the sale, the parties hereby stipulate and agree that Wife shall be responsible for all costs associated with those improvements."
So, I guess my question is this: is there any preparation I can do in advance of August 1st to ensure that things move along smoothly? Essentially, I just want to be in a place where, if she DOES try to delay, I will already know what my next steps should be. And I would prefer to keep things as professional as possible.
Your feedback would be appreciated.
Thanks!
Steve
I was divorced several years ago in Chester County, PA. It was a reasonably amicable, mediated divorce. As part of the divorce agreement, because my ex-wife had little income, we put in place a plan to allow her to stay in the house for a reasonable amount of time. Specifically, I remained on the home mortgage, and we put in the agreement that once per year, for five years, she has to attempt to assume the mortgage or refinance in her name to get me off of the mortgage. If, after the fifth try, she cannot get the house in her name, then she must immediately list the house for sale.
The fifth try is due by August 1st of this year, and the house is still in both of our names. We have two children ages 12 and 17, and have generally enjoyed a reasonable post-divorce relationship, so I have an interest in at least keeping things from blowing up. However, my financial life has basically been on hold for five years, because I have been unable to move forward with purchasing another property or taking out loans, because the home loan is still in my name. So, I really need this to get resolved per our agreement.
She works at a low-income job, as does her second husband of three years, and we purchased the house at the market peak. So while it isn't exactly under water, I doubt she is going to be able to afford the amount remaining on the loan. (~$360k)
So, my fear is that she won't be able to assume the mortgage, and that she will delay or try to avoid it, or for example insist that it cannot be listed until improvements are made. The specific language in the agreement is as follows:
"The said premises shall be immediately listed for sale at a price acceptable to both parties provided that in the event they are unable to agree upon a price, then the price shall be fixed by a licensed real estate broker selected by both parties. In the event the parties are unable to select a real estate broker, they shall each select a broker who, in turn, shall select a third broker who shall determine the price. The broker shall also advise the parties whether the listing price shall be lowered in the event the premises are not sold within a reasonable period of time. The parties shall cooperate and agree to a reasonable reduction in the listing price. Thereafter, the price shall not be lowered unless by agreement of the parties or order of the court. The house is to remain on the market until it is sold to ensure that Husband's name is removed from the mortgage and title. In the event that the premises need improvements, whether capital or not, during the pendancy of the sale, the parties hereby stipulate and agree that Wife shall be responsible for all costs associated with those improvements."
So, I guess my question is this: is there any preparation I can do in advance of August 1st to ensure that things move along smoothly? Essentially, I just want to be in a place where, if she DOES try to delay, I will already know what my next steps should be. And I would prefer to keep things as professional as possible.
Your feedback would be appreciated.
Thanks!
Steve
