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Divorces Good for Real Estate

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    Divorce Attorney John Patti discusses how an unhappy marriage is impacting the housing market.

  • Duration 4:01
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And the White House.

Divorce attorney John -- is see a -- just.

Welcome back -- to thank you Stuart it is great to be back great to be seeing you might well come back again from here is that gonna be retained still got up FX.

Did let let me get this right now you are saying that divorces.

Are a major force behind the real estate market explain that one.

Excellent I want to preface it with the story because it this always blew me away.

In the summer of 2000 -- I remember buying coming in.

And I normally go through what are your -- what are your liabilities and the house is always a major asset.

And she said my house is upside down opted out really get a cleaning made in there -- not she says it's it's the mortgage.

That we have is worth more than the value of the -- that was the first time.

Then I heard that as divorce attorney.

OK and the summer of 2000 NA so what was the solution to this particular divorce situation vis -- that house well they didn't pay the mortgage and they just stop paying the mortgage -- -- more funds to pay other things and eventually.

The banks that the house so are you saying that did.

Divorce.

Creates houses on the market.

Creates creates buyers and sellers on the market that -- saying now to get to the other way around now is Ed I believe the recession had a lot to do.

With how we -- that particular asset.

The recession comes along the house that was worth a million and you 0800000.

Is not worth 700000.

So what are we going to do.

These people are still gonna be in the real estate market -- not gonna greenhouses are gonna -- rental yeah it seems to me that divorce.

But just puts more houses on the market it absolutely -- the -- -- the -- doesn't help the real estate market if floods it with product well look what was one is now to.

Two people have to now find somewhere to live.

-- got the money to behind.

Was I don't do I mean blood KP you know don't wanna do well people who are not under what I will sell their home and that the people who apply to other.

How's it depends upon what the equity in the home is if the equity -- in in central New Jersey the equity is under.

500000.

I agree with -- that's really -- It's like -- I would -- -- -- to go out and take that equity in dump in into a hall.

I think argument is more about who's gonna take what debt because there's less profit ever these portfolios less now than it was a couple years ago so now it's a matter of going I don't wanna take that you wanna take -- that gone.

Credit -- is what I don't want a Johnny got another how many people that watching this program right now -- 500 a half million dollars with the equity in the whole.

At this point not many but -- tiny fraction but I -- and number only because I found that's the number moving forward if it's above.

500000.

Then my advice would be well you know maybe you ought to find something smaller by it -- take -- small mortgage but if it's under that.

It doesn't make sense -- Then they're going into the and to more Great Recession forced people to stay together and there to strengthen their marriage floor broken people up which.

I have found it's either war.

-- -- -- That's right like if if they had a strong marriage going into it that you -- commitment -- stronger.

-- what Tracie burns has just emailed us and said that she knows a lot of people who half that hate each other.

Them and they -- capital statement and -- to stay in the house because of and it afforded -- all right and sell things but there are currently we're they are staying in different rooms and sleeping on the couch.

But again to -- you know but if you just -- -- for the roses then move exactly half this half this my house and this happens yours and alienate both died of course.

I had a I thought that the -- attorney -- and that's important yes low libido puppet right.

But not that there's another half of that equation in the other half is this.

If it was a week marriage going into the Great Recession.

And the odds are there any up in divorce court I jump out of you know all about this stuff divorce lawyer extraordinary -- for joining -- -- -- there.

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