Expert: Dick Dennis - 5/14/2005

Question
Hi Dick, I've asked you questions before and you've helped. I consulted with an attorney as you advised. I'm the one who co-owns a home in Florida and the other person mortgaged at least half without my signature. I've discovered she can do anything with her half and if foreclosed the mortgage company has to eat her loan. My question is this: I want to sell the home even if I have to force partition. How does this work with the bank the loan is with? Can they try and stop the sale if the other person is making payments? Will I end up in some legal hassle with Washinton Mutual? We both know how that would turn out. I'm trying not to retain an attorney until I do all my research.
Thanks, Dick
Moya

Answer
Hi, Moya. Yes, as I believe I said, the other person can mortgage her/his half all they want. But that's why lenders always require ALL owners on the property to sign. So, how this was maneuvered, I don't know, but somebody is going to lose a job over it.

If you will go back to that attorney, he/she will tell you that the only way you can sell a property when the other party does not want to sell is to, as you say, file for a partition. The judge will decide.

However, here is another idea, which will not work if you need the money you hope you are able to get from the sale. You can sell your half of the property to the other person. That person can refinance the WHOLE property by buying it. That would also get that loan agent off the hook.

Another way is to sell the property to the other person and you take back a mortgage for YOUR HALF of the property. Your half would be a FIRST mortgage on the half you sell. As long as the person makes the agreed payments, say for three years, then that would be no problems.

However, if that person, for any reason, should fail to maintain the payments, then you could only foreclose on your half.

Whether you like it or not, you definitely are going to have to engage an attorney to make sure everything goes straight for you. In FL attorneys are needed for real estate transactions anyway.

I hope this helps. I do wish you well.

Dick Dennis    dixiedee13@aol.com