Refinance

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I purchased property from my ex-boyfriend. My name is on the mortgage exclusively and we both share the deed. He will not let me out of the house and I don't have the money for an attorney to file a partition suit at this time. I would like to refinance the home to pay back taxes since he has not made any payments. Is this possible?

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I purchased my home from my ex who is a real estate investor. At the time I was 26 and he was 38 and I was very naive in the process. He gave me $10,000.00 toward closing costs and indicated that he would pay the taxes until we sold the property. He later presented me with a quit claim deed, and without understanding the implications I signed, adding his name to the deed with mine. At this point I want to sell, but he refuses in order to maintain control. Hope this clears things up; sorry for the confusion.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

Hi,

I have understood your problem.

With regards to paying the property taxes is concerned as a co-owner you can pay the taxes. But for selling his consent will be required as his also owns the home along with you.

You said that you cannot afford to hire an attorney for filing a partition lawsuit but I would like to tell you that law considers that you will be starting the lawsuit on behalf of all owners. Thus will be allowed to recover your costs and some portion of the attorney fees you will have to spend from the proceeds of the sale which will be paid to your ex.

I will tell you that you contact an attorney and tell that you want to start a partition lawsuit and his expenses will be paid out of the proceeds of the sale. Most likely he will agree.

Let me know what attorney says.

David

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Now understood Atlanta GA, but really very bad of that person to get your signature without making you understand what it will be for. That actually kind of doing fraud but legally you cannot prove it!

Jessica

Hi Atlanta GA,

Welcome to our community forums.

First of all, you need to decide whether you want to refinance or sell the property. If you wish to refinance the loan, I don't think there can be much of a problem. You can draft a written statement mentioning that you are taking out a new loan against the property in agreement with the co-owner. You should get it signed by the co-owner as that would express his consent on the transaction.

You can then show the statement to the lender if at all you do not approach your own lender for the refinance. I hope your current lender is fully aware of the co-ownership arrangement on your property.

Now, if you do not refinance but sell property, you need to convince the co-owner. Since you don't have the money to file a lawsuit, you have to convince him if you want to sell.

You can give the co-owner a written statement promising him to pay sale proceeds worth his share of interest in the property. But then, you will also have to pay the lender. Just try to find out what the current home prices are in your locality. That will give you an idea on how much you can keep for paying the lender. This is because the lender may allow you to sell but he will demand the money as soon as the sale is over.

Regards,

Jessica

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Wow, thanks everyone for your replies. Unfortunately, I allowed him to chose an agent, place the house on the market, and negotiate the asking sales price. A solid offer was made on the house and he backed out of it because he does not wish to use a realtor because it cuts into his profits. He wants to come in and market the house himself. It is not a consideration for me and I want to ensure that he does not have any legal right to do this.

The purpose of my interest in refinancing is so that I can pull the equity out to pay the taxes, but I am sure that I will not get his written consent for this. Do you think it would be best for me to pay the taxes, then file a partition suit. Will a partition suit guarantee me a portion of the profits.

One other concern is that if somehow we come to an agreement for selling he will try to keep me from netting any of the profits. At closing, since we are not married how would the check be cut, and can he object to any of the proceeds I would be entitled to. I know I have a lot of questions, but this site seems to have helped me most. Thank you all!

SHARLEE2004 · Posted: Tue Apr 10, 2007 8:46 am Post subject:

Being 'unmarried' partners does not matter at this point, its how the name on the title/deed reads that will determine how the 'check is cut'.

In Florida the 'seller' chooses the title company, not sure what state your in but you need to find a 'title company or attorney' who will perform the 'Closing' when it happens.

It sounds like he is in 'control' of what happens in the transaction/relationship. Is there anything you can 'hold back' on to start 'control' of what you want?

I would suggest to find a title company/attorney for the closing and start probing them on how the closing will be handled.

Your ex-boyfriend wants to sell the home on his own? For sale by owner is not illegal but a professional Realtor will 'control' the sales process and it sounds like 'ex-boyfriend' does not want that aside from his funds being cut with commission.

Refinancing does not sound like an option at this point either. He won't agree to it.

Possibly you could offer him that during the refinance all will be resolved between you.

You get the cash out to catch up on the taxes, you give him the money from the cash out-1/2 or less and he signs the 'quit claim' deed and the new loan and title is exclusively in your name only, if you qualify. And he is merrily on his way and you have the house. Can you afford the house payments on your own if you move into it? Or does the property need to sold?

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Actually, I live in the property alone, I always have. I have no problems making the monthly payments. I have made all of them for three years-on time. I could have even paid the annual taxes had I known he was never going to pay them. The cash-out option does not sound like a bad idea, but I am convinced that he thinks he will get more if I pay the taxes, allow him to market the house and sell it. I know for sale by owner is legal, however he has not ever lived in the house, and based on my previous experience he would want to control the process again, which I will not allow. If I decide to file a partition suit, can he contest it?

Guest 0.10 Dollars($)

In reference to "holding back", at this point we have been on very limited speaking terms for the past year. I basically dictate when, or if we talk. He knows that I am basically "stuck" in this house, and that is essentially how he wants it.

Actually, I live in the property alone, I always have. I have no problems making the monthly payments. I have made all of them for three years-on time. I could have even paid the annual taxes had I known he was never going to pay them. The cash-out option does not sound like a bad idea, but I am convinced that he thinks he will get more if I pay the taxes, allow him to market the house and sell it. I know for sale by owner is legal, however he has not ever lived in the house, and based on my previous experience he would want to control the process again, which I will not allow. If I decide to file a partition suit, can he contest it?

Great advice on the title company, I will definitely keep it at the forefront.

colin · Posted: Tue Apr 10, 2007 12:54 pm Post subject:

Hi Atlanta,

As a co-owner you have legal right to start a partition lawsuit (it is called as compulsory partition) and he cannot contest it. The court will be bound to have the house sold and value received from sale distributed among the co-owners.

Colin

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Colin,
That sounds like good news. Now how is the house sold? Is it auctioned? How will that affect my credit, will it show up like a forclosure?

colin · Posted: Tue Apr 10, 2007 1:22 pm Post subject:

Atlanta,

To start with you will have to file a lawsuit (an attorney will guide you properly) after which court will issue summons, copy of which will have to be served to him.

Next you will have to obtain an appraisal and a judgment called interlocutory judgment of partition for sale. Court will then appoint a real estate professional to sell the house. After approving the sale court will issue order for distribution of the proceeds.

It will not have any affect on your credit as it is just a normal sale of the house but under court supervision. But you have a mortgage that will have to be paid off. From the appraisal you will be able to know how much the present value of the house is & how much you did be getting after the house gets sold.

Colin

colin · Posted: Tue Apr 10, 2007 1:28 pm Post subject:

and read your previous posts that you are not in a position to afford an attorney but as David said the costs can be recovered from proceeds he will be getting, so that will help..

Caron · Posted: Tue Apr 10, 2007 11:16 pm Post subject: RE: partition lawsuit

Hi Atlanta,

The sale proceeds should be divided in the ratio of the shares of interest that each of you have in the property. Now, you can check out your share of interest in the property from the property deed itself. And, in case of any confusion, you may ask the title company prior to closing.

Now, as far as filing the partition lawsuit is concerned, yes I do feel paying the taxes and then filing the lawsuit will be the right step. The partition lawsuit ensures that the property will be divided after the court conducts an appraisal.

However, the court will take into consideration each of your interests in the property. Hence whatever profit is obtained will be divided in the respective ratios of interests.

Good luck!

Caron

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