I was feeling better about our agreement this morning and setup an appointment with my L to draft the formal agreement on Wed.
When I spoke to my L to setup an appointment, she had some questions that I needed to run by my W. The big question was wether we were willing to waive the 6 month waiting period, and the timeframe on when my W would make a decision on the house. I also had some questions about tax liability (my W is my accountant)and some of our debt.
We have a $15k home equity loan and a $3k tax bill due in Sept. Home values in Michigan have dropped to the point that when you add in this debt to the mortgage, the house is about break even. I agreed that she could take the house, or if she didn't want it, I would take it.
Apparently, she has decided that she cannot afford the house, but can't find anything that she likes that she can afford. She doesn't want to move. She restated her preference to keep living like we were. I said I cannot live like this anymore and need some closure.
She discussed her plan to keep the house, and if she can't afford it, to just default on the home equity loan and live in the house for 2 years while the house goes through foreclosure. The only problem is that my name is on the home equity loan and the current mortgage. She can refinance the house, but not the home equity.
In any event, she won't agree to waive the 6 month waiting period. So, we will just have to keep living like we are for another 8 months. She can think about moving then.
