Divorce with 2 properties

[Nicole Lomibao]

Hello,

My soon to be ex husband and I have a situation. We have our first house and bought a second home last year. The first house was swiftly rented out, but the rental payment does not cover the mortgage payment so we are still paying money towards that house.

We have decided to divorce, but are now stuck with sorting out our financial assets. We are still living in our primary residence, which is our second house and are doing this as amicably as possible for our children. Our renters also gave us notice that the wife has been relocated for work and they will be moving out in the next 2 months.

We are attempting to short sale the first house being rented out. We know that neither of us can afford the first home's mortgage on our individual salaries. How does this look to the banks, since we do have a primary residence together and a large chunk of savings? We know that right now neither one of us can move out the primary residence, but we cannot afford to keep paying the first home's mortgage, especially when the renters move out.

Our realtor is confident that the first home with short sale, as it has many upgrades and is a very nice house. He says that although we have another home together, we have made the banks aware that it's a difficult time and we are working on sorting things out.

Just wanted to get second opinions on the situation. Thanks.