Wife of 25 years is divorcing me (We’ve been together since high school – the only love in my life). Home primary mortgage $225,930 Secondary $63,790 both with GMAC. Value of home est. is $190,000. Offerred to settle secondary for $12,500 and refi the primary at a lower interest rate (currently 5 3/8 30 yr fixed). GMAC refused the secondary and wants my wife to sign a quitclaim deed before they even consider a refi. That seems moot since they rejected the secondary part of the offer. Own vacation condo in northern MI and this is going better. Condo primary $142,450 with PNC who has agreed to short sale. Secondary with Citibank was $9600 but they settled for $3000 so this is closed.
I make about $100,000. Two credit cards Citibank at $11,500 zero interest for a few more months and Discover at about $7000. I have never missed or been late on a payment in my life (47 years old). All bills current. My Roth IRA worth 28,000, My IRA = $1 1,300, Wifes Roth $23,200 (but she took out $15,000 to pay Citibank $3000 and is using the rest to live in her new home she rents). My 401K = $71,600 but I have a $20,750 loan on it. Car loan 1 has a balance of $8900. Car 2 has a $325/mo lease that ends in December.
With the impending divorce I won’t be able to continue this way. I need help with GMAC. I’m afraid to ruin my credit, but can’t pay them in the future – it would make sense to reduce the debt on my home and stay here for the kids (two teenage daughters) but GMAC is tough. I get a letter stating “we service your loan on behalf of an investor or group of investors that has not given us authority to modify your loan under the program requested”.
I’m an emotional wreck but have to deal with this. I would give up everything if my wife would just try to work things out but she is so focused. She is already depleating IRA money I had established for both of us for retirement and the kids college fund (Roths). I would be glad to offer more info or talk. I will take any help you would be willing to offer. My wife only works part time and will get about $900 in child support (50/50 split between us) and $1200 spousal support. Lots of other bills as well. I am so lost. I was making major progress in cutting our debt but the immediacy of liquidating for a divorce under the current economic conditions is too much to recover from. Thank you so much for any assistance you can provide.
I certainly can feel your pain in what you shared. At times like this it becomes very hard to continue a combined past life on a new separated future life.
Let’s begin by prioritizing things a bit.
When you look forward into your future, what is more important, living within your income and meeting your obligations or trying to make all of the past stuff work based on your new financial reality? Does that make sense?
Post your response in the comments below and I’ll reply. I’m willing to help you plot a course but first we need to figure out which direction we are headed.