Legal Question in Real Estate Law in California

Re: Joint Ownership - One person wants out.

If you own the property as tenants in common, you can sue for partition. If not, I'd need to know more to make a suggestion.

Re: Joint Ownership - One person wants out.

Without their agreement to refinance, your best course of action is to file suit for partition and request that the property be sold (which may force the other owners' "hands" and cause them to agree to refinance, if they are able). The greatest risk you face is not suit from the other owners, but the fact that if unpaid, the mortgage company will foreclose and anyone who signed for the loan will have a foreclosure against their credit record.

Re: Joint Ownership - One person wants out.

You are obviously on the right track. The best approach as you surmise is to file a partition action requesting that the house be sold. That will force the other two partners to buy you out unless they too want the house sold. If no action is taken and the mortgage payments are not timely made, you risk damaging your credit or worse losing your investment in a foreclosure proceeding. I would advise you retaining counsel to commence the partition action. If you have any further questions, please do not hesitate to contact me at (408) 268-2580.

Re: Joint Ownership - One person wants out.

You can't get off the mortgage unless they and/or the bank agrees.

If you have equity in the property, you may want to sue for partition--this forces a judicial sale and you would get your share of the property value. These can be expensive, but it may serve as an incentive for the other owners to negotiate with you.

You can also let the property be foreclosed upon, but make sure the loan is "non-recourse." Otherwise, you could be sued for any deficiency owing after the foreclosure sale. Even with a non-recourse loan, the foreclosure will affect your credit.

Re: Joint Ownership - One person wants out.

There are some other issues here. If the property is hael as tenants in common, you may be able to recover the overcharges from the person or persons who paid less.

Chances are that the partition action is the best way to go to get them moving, although a strongly worded letter from an attorney may get them moving, too.

I know of lenders who will make loans, similar to the one you have now, without any check of credit, as long as there is enough equity in the property.

It appears that they are not going to move without a nudge. Let em know if I can help.

Ken Koenen

925-924-0100

Re: Joint Ownership - One person wants out.

The sum of the advice so far is to sue for partition, and I concur, but there's a lot more to it than that. Your best strategy depends upon several additional factors, including how much equity there is in the house, who put up the down-payment money and the personalities of the co-owners.

A partition doesn't necessarily result in an equal division of the sale proceeds. The court can distribute the net proceeds according to the evidence, and if you have made more than your fair share of contribution, or can convince the court that someone else was the 'bad guy,' you may get a larger slice of the net. It sounds to me as though you may have an action for fraud to couple with the partition action.

A few other strategies are conceivable, e.g. buying the note and foreclosing, buying the others' equity positions, etc., the usefulness of all highly dependent upon facts unknown to me.

I have handled several cases of this kind, and I would be pleased to offer some additional 'free initial consultation' if you wish.

A partition can be commenced by any co-owner, whether a tenant in common or a joint tenant.