After less than a year, the other half owner recently acquired $200k in cash and wants to leave us. He doesn't want to pay any more into the house. He doesn't realize that by abandoning the house the lender will call in the loan and he'll have to pay his half with nothing to show for it. He thinks he can just walk away and leave us with the payments. We cannot afford to pay the full morgage payment on our own. Nor do we want to lose the house. He is also the type of person that cares less about others, but is only interested in what serves him best. Would it be fair to ask him to pay his half of the house loan, and then offer to let him stay as long as he wants with no further monthly payments, and no other monthly bills? The man is single, in his 70s, and really has no place to go. He is quite paranoid and doesn't trust anyone, not even us anymore. He also has three pets. He thinks he can take his $$ and live anywhere he wants, but an abandonment will show badly for him.
2007-12-25 07:12:33 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
We got an all-interest loan because the sale of his old house would pay it off. After closing, he banked the money.(If you haven't figured it out by now, the man is my husband's father.) The papers we signed on this house said that if an owner abandons the property, the lender can call in the entire loan amount. We do not want to lose the property and we cannot afford the entire monthly mortgage on our own. Neither can we pay off the entire loan amount. This would force a sale. If we lose the house, we have no place to live and our credit would be ruined. We cannot even get a small loan in this situation. Right now we are over $500k in debt with his dad and will never recover if he walks without contributing something toward the house. When he was really sick and needed to be removed from his old house, we were the only ones in his family willing to help him. He offered to give us everything, but all we wanted was to help him get better and keep the house. We
2007-12-25 10:31:05 · update #1
We got an all-interest loan because the sale of his old house would pay it off. After closing, he banked the money.(If you haven't figured it out by now, the man is my husband's father.) The papers we signed on this house said that if an owner abandons the property, the lender can call in the entire loan amount. We do not want to lose the property and we cannot afford the entire monthly mortgage on our own. Neither can we pay off the entire loan amount. This would force a sale. If we lose the house, we have no place to live and our credit would be ruined. We cannot even get a small loan in this situation. Right now we are over $500k in debt with his dad and will never recover if he walks without contributing something toward the house. When he was really sick and needed to be removed from his old house, we were the only ones in his family willing to help him. He offered to give us everything, but all we wanted was to help him get better and keep the house. We
2007-12-25 10:31:06 · update #2
We forfeited all other assets to the rest of the family in fairness to them. Now they have everything and we have nothing. Because nothing was put into the house on an all-interest loan, if we sell, there is nothing for us. No equity has been accumulated in less than a year. This is why we have to keep the house. Please offer help on how to keep the house.
2007-12-25 10:36:13 · update #3
There are not many places that will take an older person with that many pets. Offering to buy him out may leave him with some money to live on, but also allows him to walk when he's ready without leaving you in a pinch. Overall, it sounds like he can't leave, even if he wants to. If he walks away,he'll lose whatever was put into the house. See a lawyer or arbitrator, and good luck.
2007-12-25 07:24:49 · answer #1 · answered by been good 3 · 0⤊ 0⤋
Where do you get that just because he leaves the property, that the lender will call the loan?
That isn't true.
The lender doesn't care whether one person stays there or not. Whether he likes it or not, ALL of you are on the mortgage together and ALL of you are legally responsible to pay it.
You need to contact a real estate attorney immediately. If you cannot afford to make the mortgage payment without him, YOU HAVE NO CHOICE but to sell the property, and that requires his signature. You need to do it before he disappears.
You don't have a choice but to sell if you can't afford the house with who is remaining....b/c the law will also NOT force him to stay in a real estate transaction that he doesn't want to be in.
However, the judge will also order him to pay ALL of the prepayment penalty, if there is one, if he is the one that wants out.
The ONLY way to handle this is to go to court (before he disappears, and before the home falls into foreclosure...that is why you need to move quickly).
You can't refinance or sell without his signature, and you cannot legally force him to pay....a court has to do that.
PS: Renting out half the house is a short-term fix...keep in mind that if he disappears, you can NEVER refinance or sell the property without his signature...and he will always be due 50% of the equity upon sale...that is why you need to nip it in the bud now.
2007-12-25 08:07:25 · answer #2 · answered by Expert8675309 7 · 3⤊ 0⤋
Ok, first of all if he's 70 and has plenty of money he could care less about it "showing" badly for him, and rightfully so.
Why would they call the loan if he leaves? Is he going to contact the bank and tell them he's out, and do the legal work to take himself off the title? Normally as long as the payments are made the bank could care less.
Your two options are to sell the house, and move on, or re-fi it in your name only. That's it. If you can't afford the payments, move on, and next time only buy what you can afford.
This is why friends don't stay friends for long when money is involved.
2007-12-25 07:17:17 · answer #3 · answered by Anonymous · 3⤊ 0⤋
if he has 200k and in his 70's then he doesnt need to worry about credit. you can make him some kind of token offer on the house. you can sell the house while you can. you can sue him. i would talk to a lawyer.
2007-12-25 07:18:25 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I went in half once on a house with a loser. Sounds like you're in a similar situation. It went to foreclosure.
Lesson learned: Never go in on a house with somebody!
2007-12-25 07:18:24 · answer #5 · answered by iNsTaNt pUdDiNhEaD 6 · 2⤊ 0⤋
Just ask him to sign a quick claim deed of trust the home over to you. If he will not do this then sue him for his half of the home. Only thing you can do.
2007-12-25 09:56:10 · answer #6 · answered by Big Deal Maker 7 · 0⤊ 0⤋
Too profound for me. If hes got that much money [and the age he is] He should pay it off as a present then carry on ,cant take it with him.
2007-12-25 07:25:21 · answer #7 · answered by gimmieabreak3 2 · 0⤊ 0⤋
the other option is to rent a part of the house.
determine what is the current rates for rent in your area.
of course, this means sharing with others you do not know. but its better to share than to lose the house.
the first option is to try to get him to stay.
2007-12-25 07:18:10 · answer #8 · answered by ramni222 6 · 0⤊ 0⤋
Some possibilities:
Rent his part of the house to someone else.
Sell the house.
Find a new partner.
2007-12-25 07:18:57 · answer #9 · answered by Tony 4 · 0⤊ 0⤋
70 is quiet old but looks like he wants to sale out.
2007-12-25 07:18:15 · answer #10 · answered by ? 7 · 0⤊ 1⤋