Legal Question in Real Estate Law in California

Re: How can I force a co-signor to refinance or sell our home

There are two basic paths one can pursue in resolving real-property ownership and/or loan-responsibility issues: negotiation and lawsuit. Some people stuck in such problems sometimes think, or hope, there is a form they can fill out and file, or a government agency they can make a report to, but generally it is going to take either a successful negotiation with the other side, or filing and maintaining a suit. A third possibility is that such matters can sometimes be arbitrated, but only if there is an arbitration agreement covering the issues.

So, since it sounds as though the other party here is not, at least at present, in a frame of mind to enter into meaningful negotiations, either directly or through a mediator, that probably points to your having to sue.

I should also point out that a review of all your documents could suggest another alternative, that being to do nothing and let matters take their course, which would probably include foreclosure on the house and loss of some or all of the equity. If there were no personal recourse by a lender to you, that might be the more economical approach. However, it sounds as though you are a guarantor, and guarantors are more likely than borrowers to be reachable for a deficiency judgment after a foreclosure. Therefore, I'm not recommending this approach without seeing all the documents.

That leaves a lawsuit. Again, it would be necessary to review all the documentation and other facts not reflected in the papers to form a solid opinion as to what kind of suit to file. For example, if you are clearly co-owners, asking for partition by sale would probably be appropriate. However, it could be, if you paid all the down payment, that you are the sole owner by virtue of a purchase-money resulting trust. You may be able to add causes of action for breach of contract. Possibly you can allege that a partnership was created, and ask for its dissolution under court supervision. Finally, the broker may be partly right, there may be some fraud issues here, but I don't recommend suit based entirely or primarily upon a theory that you were defrauded.

Please feel free to contact me for further, free analysis. I handle cases like this regularly, and all over California.

Re: How can I force a co-signor to refinance or sell our home

You can sue the other party, of course. It is likely that the loan broker (if this is the same one who originally made the loans)is involved in this also, and you have no obligation to do anything she demands, and I'd be amazed if the loan broker sues. You are correct to refuse to quit claim or transfer any interest in the property until you are off any loan obligation. However, if the payments are not made on the loan, the lender will commence foreclosure and your credit, as well as the other party's credit will be trashed.