Expert: Dick Dennis - 8/25/2006

Question
MY HUSBAND AND I PURCHASED A HOME IN LOUISIANA IN MAY OF 2006. WE HAVE RECENTLY DECIDED TO SEPERATE UNTIL DIVORCE. I LOVE MY HOUSE BUT CANNOT AFFORD IT ALONE. IF WE SELL IT WE WILL STILL OWE ABOUT $8000 IF WE GET THE FULL APPRAISED VALUE. IS RENTING MY HOME AN OPTION? IF SO, WHERE DO I BEGIN?


Answer
My guess is that if you can't afford the monthly payments, you may not be able to get the rent to cover the monthly payments, either. Unless .  .  .  you are willing to make the balance of the payments that the tenant's rent doesn't cover. I would recommend you consult with a very knowledgeable Realtor who would help you put together a rental agreement, etc. Chances are that person would help you because of future considerations when you are ready to sell that property.

Or, sell your property for what ever you can get for it, but require that the buyer cooperate with your getting a "short pay" form you lender. The lender will require they keep their nose in the transaction to make sure you do not get a dime out of the transaction. A short pay is when the lender agrees to accept less than what is due them during a sale of the property. Again, consult with a VERRRRRY knowledgeable Realtor to help you with this.

Caveat: Whatever amount is not paid by you and erased by the lender, you will have to account to the IRS for it on your tax return, your husband, too. At least that way it'll be split between you. Consult with your tax expert on this.

I do wish you well.

Dick Dennis               dixiedee13@aol.com