Equity and Deeds??

aaswalls · Joined: 09 Nov 2007 Posts: 3 2.30 Dollars($)

I currently live in an Arkansas home purchased early 03. The mortgage is in my name only and I am the only tenant. My mother paid closing costs and repairs aprox 12k. Her name is on the deed and she quit claimed my name on the deed as well. I have been paying mortgage plus 170 a month for the repairs. She is claiming this as an investment property and that I am only paying rent. She now want me to "buy her out" for the full appraisal. Can she sell the house with out my consent and what equity am I entitled to? Is an attorney in need?

livinginnky · Posted: Fri Nov 09, 2007 2:20 pm Post subject:

Hello and welcome to the forums

How did you get a mortgage if her name was on the deed?

If you are both on deed then no, she cannot sell without your signature.

It is always in your best interest to get an attorney when situations like this arise. If you are going to go to court you need an attorney.

Good luck

jenkin7 · Posted: Sat Nov 10, 2007 3:35 am Post subject:

Hello Aaswalls,

If you are on the deed, your mother cannot sell the property without your consent, as Eric has already mentioned that.

adonis

Eric,

I understand if Asswall's name is not on the deed, the mother cannot sell it without her consent. But the mother can file a partition lawsuit to force the sale of the home. Even in that case, she needs to give her some part of the equity.

sara

Hi asswalls,

Your mother isn't justified when she's asking you to buy her out for the full appraisal. This is because if she has quitclaimed a part of her share in property and made you a co-owner, then you can buy her out only for the interest she's supposed to have in the home.

I feel she can file a partition lawsuit just as adonis mentioned but i don't know whether she'll take that step. So, it's better to talk to an attorney asap. He can be the right person to help you tackle any legal step if you require.

Take Care

aaswalls · Joined: 09 Nov 2007 Posts: 3 2.30 Dollars($)

If my mother and I agree to sell the house and we split the money in half. I will still be left with the mortgage to pay off. Since the mortgage is in my name. Or does the mortgage get paid off and we split the profit. At this point I don't care if I only get 25% I just can't see myself refinancing a cash out 30 year mortgage like she wants and handing her a check for thirty five thousand (or more). Sara, how can I figure my mother's interest in the house? What is acceptable percentage? Does anyone have a recommendation for a lawyer in Arkansas? I hate to take my own mom to court. I was also told by the lender that attorney fees would make this endeavor pointless.
Aaswalls

evolovik26 · Posted: Mon Nov 12, 2007 7:03 am Post subject:

There is no set %. What you should do is figure out how much did each of you put in this home thenhow much its worth and come to an agreement that once you sell it then you payoff the loan first then what you have paid into it then if there are profits you can split thouse.

livinginnky · Posted: Mon Nov 12, 2007 12:08 pm Post subject:

If attorney fees would make it pointless... it sounds like there is not a lot of equity. If there is no equity what are you buying her out of.

Could you even sell the house for this appraisal value?

If not, then you might not be able to refinance anyway. Banks are checking values much more strictly than in the recent past. There is a chance she won't get any money anyway. Sounds like you paying the $170 per month was a good deal for her.

By the way. What was your original agreement for? How did you originally word your contract for the repayment of the repairs?

And like Eugene said there is no set %. My favorite saying in this business is that..."Everything is negotiable"

You at least need to call an attorney and ask what they recommend. I don't think you would be forced to sell as you have the bulk interest in the property. Ie. Mortgage in your name, you have proof that you pay her $170 per month for the repairs. Sounds like you have a good case to me.

aaswalls · Joined: 09 Nov 2007 Posts: 3 2.30 Dollars($)

The house appraised at 88 for 1400sqf 3bed 2 bath and is very sellable, even in the slump market. It was a HUD forclosure and in very poor condition. My mortgage is 35 and my mother probably has 12 in it. Very complicated. I have paid her almost 8 for the repairs plus the mortgage. We never made a definate agreement to anything and there was no contract signed. Bad decisions made on both parties but at the time I was 20 and needed a place to live.
aaswalls

livinginnky · Posted: Wed Nov 14, 2007 8:02 am Post subject:

Who has the mortgage? You or her

You said you have paid her 8 (8 what? thousand) plus the mortgage. How much does she expect to make. 10% on here investment. If she was to get to double up that is the best investment she ever made.

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