I and my
- quote -

are the credit card bills part of the same property division?

Sandra Loosemore wrote:
- quote -

Thank you for this good advice. I have dropped the price quite a bit.
The house is in a "desirable" neighborhood, but it is in need of
painting and resodding and assorted other repairs which would probably
cost me around $10K. So far I've put in a new fence and a new A/C
system, but my injury prevented me from doing further repairs. I and my
daughter are living in the house, but it needs to be sold as part of
the property division.

don_e_99[at]yahoo.com writes:

- quote -

Have you tried simply dropping the price? Or, instead of selling the
house at a loss, you could rent it out, or if you're still living
there yourself, look for a housemate. The latter would make an
immediate improvement on your cash flow situation and give you some
breathing room while you figure out what to do next.

If there are easy home repairs that you can do yourself at little
expense, I'd go ahead and do them. Just making sure the house is
*clean* inside and out goes a long way, too. If there are big repairs
like replacing the roof or heating system that are necessary to make
the house habitable, then it would be reasonable to take out a home
equity loan for that. OTOH, I would not invest in new carpeting,
kitchen/bathroom remodelling, or landscaping.

-Sandra

don_e_99[at]yahoo.com wrote:
- quote -


1) have you called the credit card company?
2) is anyone living in the house now?
3) can you rent the house?
4) can your lawyer make a referral to a CPA?
5) how much is house "appraised for"
6) how much equity do you have in house?
7) what are monthly payments on house?
8) who is currently making these payments?


If the spouse is running up the credit cards... I'd get that stopped.
call the credit card company and find a way to cut the account off
regardless. One thing I have done is ask for a new account number to
be issued and change the name on the account. This way account is open
(helps credit score) but maybe your spouse no longer has access? I was
single when I did this before.

don_e_99[at]yahoo.com wrote:

snip
- quote -

It depends on the nature of the work. Fixing a broken toilet is a
no-brainer, little things that are noticeable, but don't cost too much,
are worth doing. A $50K renovation may move the house but not recoup the
money you just put in. I sold a condo years ago, and let the buyer
negotiate based on some bathroom work. She saved $1,500 on the price. I
would have spent $10K to rip out the bathroom.
The company will likely give you a low-ball price. You can ask them for
an estimate. (How bad is the place?)

- quote -

10%? You worked this year, and would have to pay tax on the withdrawal,
as well as that penalty. If you moved the 401 to a new employer, you can
likely take out a loan at a fair rate, and pay it back after the sale.

- quote -

Not great. Please be careful of the sharks. There are some who would
change you a very high rate and put your house at risk.

- quote -

Whatever you have in the 401, try to keep it. Once you get through this,
a look at your spending is in order, and a plan to move forward.
I'm sorry for your circumstance.
JOE

I'm in the middle of a divorce which has been dragging on for some
months now. My house is on the market, but no takers (it needs
relandscaping and some repairs). My credit cards are maxed out because
of legal fees (my wife's lawyer ran them up), and I can't afford to pay
the minimum monthly payments anymore. I have a little money left in the
401k plan. I was out of work for over a year due to an injury, and have
been at my current (albeit lower-paying) job for only 8 months. My
financial situation is dire, but my credit rating is very good. I have
an attorney, but she can't give any financial advice, and I can't
afford the services of a CPA (credit cards maxed out), so I was
thinking perhaps somebody on here could give me some hints on the best
way to proceed.

1. The house is currently for sale "as is". Should I get an equity loan
for the repairs - and pay off my credit cards also? Or should I fire
the realtor and sell it to a company that buys distressed
properties/divorce houses (any recommendations?)

2. 401k: Should I wait for a QDRO? I was thinking I might as well take
the 10% hit and get rid of the credit card payments now to improve my
cash flow (and close out the credit cards to prevent future withdrawals
by lawyers)

3. Credit: How would a bank/credit union view my situation (job,
divorce, cash flow) as far as an equity loan or a loan to pay off the
credit cards?

Any input would be greatly appreciated. Thanks!

Don E.