Expert: Dick Dennis - 6/13/2005

Question
-------------------------
Followup To
Question -
-------------------------
Followup To
Question -
Hi again, Dick! You've helped me before. I'm the one in Michigan who co-owns a home in Florida with someone. She mortgaged half or more of the home and I'm going to force partition. My question is, Will the bank take the loan from the actual sale of the house or is it her responsiblity because I never signed. Also, I just found out she's been renting it. She said I owe half of the mortgage for upkeep and improvements, even though I was never consulted. I certainly have not received any rent. What a mess! like I said before, I want to do my research before I sign on the dotted line. Thanks for your advise about using a real estate attorney, I think I may have found a good one.
Thanks, again, Dick
Moya
Answer -
She certainly has a lot of nerve, Moya! I suggest you send her a certified letter in which you point out to her that she failed to get your permission to rent that house and that she now owes you 50% of the rent that she has collected. It would be better yet if that letter had an attorney's letterhead on it to show you mean business.

As long as you are forcing partition, your attorney can throw in the rent she owes you as part of the suit. However, if you do collect half the rent, by rights, you should be responsible for half of any repairs and upkeep .  .  .  but NOT THE MORTGAGE. Make sure you get a receipt for each bill you pay and that she actually got a bill for the work she had to do.

If you want to really be a stinker to show her you mean business, you find out who the tenant is and give that tenant notice that she has to move unless she sends you half of the rent in the future. The tenant did not get your permission to enter that property.

I do wish you well, Moya.

Dick Dennis   dixiedee13@aol.com

Hi Dick, Got any ideas on how I could find out who the renter is? They are not listed in the phone book as I've checked out the cross reference on line. Maybe have the lawyer send a letter to occupant at that address? Isn't there a tax exempt thing going on in Florida that it has to be your homestead and not a rental? And isn't it true that her interst rate with the mortgage is based on no rentals? It seems I remember reading that the Feds take that really seriously. Hmmmm.But if she owes back taxes, so would I as being half owner even though I didn't know what was going on. What do you think?
Thanks,
Moya
Answer -
Yes, Moya, your interests are at risk. No doubt. Are you making the payments on the original first mortgage? Or in her refinancing she refi'd the original mortgage out? I just cannot understand how a lender would have done that without the signature of the original borrower.

Tax exempt is always reserved for owners who live on premises as their primary residence. And yes, all this going on does not excuse you from making sure the property taxes are paid. It only means you have to add any additional costs in a suit against her. And it would seem to me this mole hill is getting to look more and more like a mountain.

You're either going to have to go down there and check on things or hire someone to do it. One way or another it is going to cost you. Now you see why it is ALWAYS a bad idea to own property with someone who is not committed to you in one fashion or another.

Another reason for foreclosure is maintenance of the property. If the lender decides that the property is becoming ratty, that is reason enough to put the property into foreclosure.

All this leads me to believe that you MUST hire an attorney to stop the other owner from doing what she is doing. Your partition of the property will take care of that. AND DON'T EVER OWN PROPERTY WITHOUT ANYONE ELSE AGAIN .  .  . unless it is a husband.

I do wish you well.

Dick Dennis
Hi again, Dick, you must be sick of me. I'm answering your question about the mortgage. I am not on it. Actually, there are 2 with the same bank, totaling the $70,000. Thanks for the advise about adding additional money from back taxes to the suit. I'm waiting for an attorney to call me back this morning and taking notes, making lists of things to ask him. I am a full time care giver to my totally disabled husband so the thought of going down there can't happen. He is a quad and so that is that. Actually, I'm afraid the woman will pull something to make me go down there.Anyway, incase you're interested, I'll let you know the outcome. You have been such a treat in this chapter of my life and I thank you.
Moya

Answer
If I remember correctly, Moya, we are talking about a condo. Therefore you bought it free and clear of any mortgages, liens or encumbrances. That is good. Who is this other person who got a loan on HER HALF of the property? How did she con you to even get on the title with you? Was it mostly her money that bought it? Was it yours?

By the time you read this you should have received your response from the attorney. Let me know what develops.

I wish you well.

Dick Dennis