Today we’re talking about how you can handle your investments when life takes a sudden turn.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: One of my clients called me and unfortunately, they’re going through a divorce. They did not expect it and did not anticipate when they bought their first home about a year ago. Given that circumstance, she’s looking at the possibility of having to sell. I said, “Well, wait a minute. That’s a quick turnaround. There’s not a lot of upsides to that except life happens and you’ve got to do what you’ve got to do, but you’re going to drop into the renters pool again and start over with new needs and have another chance at sometime in the future to grab onto your own house. So let’s talk about how you can hold onto that. I would suggest roommates just to get started and start paying and covering the nut on that mortgage on your own.”
Bob Nelson: Be careful, of course. There’s always a security issue. If you do not know the person, you do not know their personal habits, there may be more abrasion in that roommate selection than the benefit of the economic contribution toward the monthly mortgage payment, but that’s just me. I’m on the security side, the safety side of things. I’m getting old.
Marcia Edwards: Not me, I live on the edge. I’ll take the antithesis viral. In looking at that opportunity. really what I’m suggesting is there’s an alternative to selling and as soon as you feel there’s an alternative to your game, your plan, then you are empowered to move smarter on the rest of the package. So if ideally it is to sell, but only if you cover a mortgage that’s pretty tight numbers since you bought recently, then you can have a plan B. So work the alternatives out when you have to make a move.
Bob Nelson: Now also be aware that the ex spouse to be who is not going to be in possession of the house, will most likely require, demand, et cetera, that their name be removed from the mortgage. That’s not easy. You may have to refinance in order to get the name of the ex spouse to be off of that loan.
Marcia Edwards: Now, the good news is IF that this is your position right now, you’ve got the opportunity of interest rates that are phenomenal to see if you can qualify on your own, as well as the opportunity of a marketplace where you’ve got resale that’s appreciated pretty aggressively over the last 12 months.
Bob Nelson: The idea though, I think, if you have a property that met your needs and what hasn’t happened, is the marital union staying together. If there’s a way of retaining that somehow or another, one or the other person retain it, I think you’ll be benefited in the future as long as you can support the mortgage payment.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.
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