My boyfriend and I are breaking up, and we have a house with both of our names on the mortgage. We both want the house, how will it be determined who gets it? Selling is not an option, and neither is refinancing the mortgage in just one of our names.
2007-02-09 03:59:55 · 11 answers · asked by KarenB 1 in Business & Finance ➔ Renting & Real Estate
None of the answers suggested that one of you stay in the house and make the entire (or majority?) of the mortgage payment. The other would live in another place but retain ownership.
In Oregon, if a husband and wife seperate and own a house together, the one who stays in the house is expected to pay the entire mortgage and upkeep. Usually the party who moves out stops earning equity in the house at that time.
My suggestion is to see if you can't work out some way that you can meet the mortgage and upkeep expenses between you - so that you both retain the equity you've built up. If this means living apart, have the property appraised and then divide any new increases in equity between you based on what percentage each person is paying of the upkeep and mortgage expenses.
2007-02-09 05:28:44 · answer #1 · answered by An Oregon Nut 6 · 1⤊ 0⤋
It wont be determined who gets it. You're not going through a divorce.
You each own 50% interest and you have equal rights to the home. You just laid out your only two options (selling or refinancing) and said neither are an option.
Well, sorry, but those ARE your options. That's it. Unless you want to live together.
Your other idea is to work something out. Have it appraised and find out what you guys have worth of equity, and then agree that the one who is not living in the house gets half that in a year or two when you refi or sell. The one who lives in the house has to pay the full mortgage payment.
Normally though, selling or refying is your option.
2007-02-09 04:19:29 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Unfortunately, the two of you are going to have to come up with some sort of compromise. Since you are both legally responsible for the house, both of you are on the hook for the mortgage. You have very few options here: 1) buy out the other owner at the fair market value (determined by a real estate appraiser, not a real estate agent), 2) sell the property (which I'm not clear why that's not an option) or 3) both of you continue to live in the property while you're broken up. Given the possibility of that third option, I suggest that the two of you find a mediator to work this out so the two of you can come to some rational decision.
2007-02-09 04:15:58 · answer #3 · answered by SuzeY 5 · 2⤊ 0⤋
I see four options: (1) Sell the house outright; (2) One buys the other out by refinancing in just one name and paying the other for their share of the equity; (3) Both of you live there even though you have broken up; (4) Rent the house out to someone else.
Since you say (1) and (2) are not an option, and (3) is not likely to work out, renting the house out is what is left. You will still have to work out who will contribute how much and who is going to pay the mortgage on time, or you risk messing up your credit. This can only be accomplished by working with each other, so hopefully your break up is a friendly one. Otherwise it would be in your best interest to sell.
2007-02-09 04:17:37 · answer #4 · answered by Brian G 6 · 2⤊ 0⤋
Talk with the lender. If there isn't a "due on sale" clause (or if they'll waive it) perhaps some transfer could be worked out. You two sign a deed into one of you. This transfer of ownership needs to be in consideration of something - maybe the one of you who will no longer be the grantee (the owner as stated in the new deed) could hold a land contract from the other for his/her 50% share of the property/equity. Make the payments called for in the land contract be small enough to be afffordable for the one who'll continue to make the mortgage loan payment, and have the payments go partially or totally towards a downpayment on a new mortgage loan for the property. In short order (a few years, probably) your dual ownership problem will be solved.
But be sure that doing this will not cause your current lender to call your existing loan due and payable.
2007-02-09 06:30:34 · answer #5 · answered by PLS 2 · 0⤊ 0⤋
First of all you need a lawyer. If you live in a community property state, you may be required to sell it and split the proceeds according to the state property laws, even if you aren't married. Furthermore, if this is treated by the court as a partnership in the property, there will be consideration as to whom paid for what. Be sure to provide receipts and other documentation. Finally, I suggest you put whatever agreement you come to in writing. Because this is a real estate related transaction, you will be subject to taxation upon the sale unless you agree to exchange it.
2007-02-13 03:11:12 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Who paid the down payment and the monthly mortgage? Perhaps sell the house and move on with your life is an option.
2007-02-09 04:12:00 · answer #7 · answered by Kimora Miranda 3 · 0⤊ 1⤋
then if it keeps up, the bank gets it....
One of you needs to buy out the other.... that would make it feasible to refinance in one name...
Otherwise, sell. Why isn't selling an option???? I for one would not want a house that holds bad memories and vibes.
2007-02-09 05:40:56 · answer #8 · answered by The ReDesign Diva 7 · 0⤊ 0⤋
You could let the bank foreclose and neither of you will own the house.
2007-02-09 04:19:09 · answer #9 · answered by Tapestry6 7 · 0⤊ 2⤋
if neither of you can buy the other out, you may have to sell. Sorry.:(
2007-02-09 04:03:59 · answer #10 · answered by Anonymous · 2⤊ 0⤋