Our house is an under water property

This is a common scenario. Generally, when the lender verifies that a divorce has been
filed and realizes that each borrower intends to “walk-away” from the home, they are much more
willing to discuss alternatives like a “short-sale.” If the mortgage was a “non-recourse, purchase-
money” loan, the lender’s only recourse in the event of a default is to foreclose. They will not be
able to obtain amoney judgment against the borrowers. A home equity line-of-credit is different
and an attorney should be consulted on how to deal with that encumbrance.

David L. Miller is a Partner with Kring & Chung, LLP, a family law firm in California that is dedicated to protecting clients, their rights and their families while providing tailored service in a wide range of family law cases. David L. Miller manages the Family Law Department and can be reached at (949) 261-7700.Visit their family law website www.kc-familylaw.com.