Legal Question in Real Estate Law in Michigan

Short Sale Mortgage

I am divorced and live in Michigan. My ex and I have the marital home for sale with a mortgage of $318,000. I have a home with no mortgage but a $40,000 home equity loan. The original divorce decree stated we would split the money from both. She wants to short sale the expensive home and have me pay her an agreed to split on my home. But in order to do this I would have to get a mortgage on my home before the short sale on hers. Is this illegal? What would happen to my new mortgage after the short sale?


Asked on 4/22/09, 12:40 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Short Sale Mortgage

If you have a home equity loan on your home, there is in fact a mortgage on your home, as home equity loans by definition involve a lien being secured by your home. It is not unusual, in a divorce, for the party who is keeping their home to borrow money to pay off the spouse who is to receive proceeds based on the value of that home. I do not see how this is illegal unless there are other facts involved.

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Answered on 4/23/09, 12:53 pm


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