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Can't comment on the divorce situation but if your payments are current your lender LOVES you and is not interested in a short sale or any other avenue that would change the current payment status.
If he rules like this, perhaps he should rule that someone finance you as well. In today's world of finance, you are in an impossible situation.
Unfortunately courts in divorce cases don't really deal with reality. I have Judges saying someone out of work for 2 years is not entitled to a reduction in support as his unemployment is a temporary situation
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