Expert: Dick Dennis - 8/3/2006

Question
dear mr Dick Dennis
I have a promblem,My father passed away over two years ago.He left his house to me and my cousin we both own 50%of the house however,he left a living will that his girlfreind can continue to live in the house until she feels she no longer wants to live there.NOw here is what i want to know what to do .the house onyl has a morgage left of 78,000 and the house has been apprasied at 320,000 i wanted to know if there is anyway i can sell my part of the house so i can get money now instead of waiting until the house is sold.NOW my cousin nor the girlfreind are willing to buy me out of the house i allready tried that.If u can suggest anything i can do to get money in hadn now i am willing to sell my portion at a fraction of what it is worth i just dont want to wait anymore.
thank you
bruce lewis  

Answer
Ordinarily, all you'd have to do was to engage a real estate attorney to file a suit for PARTITION. But you have the former girlfriend in there and she is the fly in the ointment. And at free rent?

Does your cousin and you share paying the mortgage each month?

Let's say that you each pay $250 each month for mortgage payment, plus $50 per month property taxes and insurance. So, you each are responsible for $300 each month. Well, you can arrange to refinance the property. Of course, the cousin has to agree to doing that. If you would refinance it to a valuation of $300,000, you'll be able to get a loan of $240,000. The only payment on that would be in the neighborhood of $1,600. You agree to pay $1,350 per month and your cousin continues to pay $250, plus taxes and insurance as before. This is only an example. But my guess your cousin is not going to go for it.

I would recommend you consult with a local estate attorney and have him/her study the living trust and see how a partition suit can be done, or at least separate your interests so you can sell it. There is another problem the attorney may be able to address: Apparently you and your cousins are the main trustees in the living trust and it would take both your signatures to make any changes. And the girlfriend seems to have a life estate. You're locked in there two ways. You definitely should consult an attorney who specializes in family or living trusts and see what could be done for you. Try the attorney who created the living trust.

Of course, you could always bribe your cousin by offering him/her an additional percentage if he does buy you out.

I do wish you well.

Dick Dennis                 dixiedee13@aol.com