Legal Question in Real Estate Law in California
I purchased a home with my a relative, 50%/50% as joint tenants. I have lived in the home since purchased and they have never had any occupancy at the home. I recently filed for chapter 7 bankruptcy and would like to continue living in the home, as i have made all the mortgage payments every month since inception.
I am the primary borrower and they are the co-signer on the loan.
Can my relative force me out of the property, as they are on the mortgage as well as on the deed as a joint tenant?
What are my options to stay in the property?
2 Answers from Attorneys
I hope that you have a competent bankruptcy attorney handling your chapter 7 matter.
If one joint tenant is adjudicated a bankrupt, the involuntary transfer of the interste to the trustee in bankruptcy operates to effect a severance of the joint tenancy, unless the interest is subject to a valid homestead.
First, co-owners can't force each other out. Your relative can, however, demand co-possession, i.e., the right to move in and be your housemate. He or she would probably need to go to court to get an order for co-possession unless you agreed voluntarily to share possession.
Your greater concern should be the bankruptcy, the lender, and what your co-owner's position will be on the house, the loan and the bankruptcy.
I assume the loan encumbers the entire property. Therefore, if it is not paid by someone, the lender will ultimately get relief from the automatic stay and carry out a foreclosure. Your BK lawyer may be able to negotiate a deal to save the house. A major factor would be the amount of equity, or the extent to which it is "under water."
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