Legal Question in Real Estate Law in California
Sticky mortgage situation with ex
Here is the long and the short of it: I own a condo (title in my name) but on the mortgage my ex is the primary borrower and I am the cosigner. I pay it every month. On the 2nd mortgage. I am the primary and he is the cosigner (This mortgage was just to pay off His debt and he is responsible to pay it. We have a written agreement signed by both of us). Can he legally force me to sell? How will it affect me if he declares bankruptcy? What can I do if he stops making the payments on the 2nd mortgage? I hope this makes sense. Please help me get out of this situation.
3 Answers from Attorneys
Re: Sticky mortgage situation with ex
You might look into refinancing with the mortgage in your name only. Obviously, you are the owner of the property. However, if the 2nd is not paid, then they can foreclose. If he files BK, the 1st will still look to you for mortgage payments or they can require a new loan because they made the loan believing he was solvent. Communication with everyone involved would probably go a long way to answering your questions.
Re: Sticky mortgage situation with ex
Mr. Cohen's advice is very good -- that's about as far as anyone could advise on the more "short" than "long" version of the facts.
A more in-depth analysis is probably warranted, however, especially if a BK is a likelihood.
You should probably present a more detailed set of facts to a family law or real estate lawyer, including information on the size, interest rate and age of the two loans; the current market value of the property; your own income and credit rating; details of your ex's finances, including the agreement under which his prior debts got paid off; what are the terms of your decree of dissolution or property settlement agreement, and how long ago it was final; how well the two of you communicate and cooperate; and on and on.
I think your greater risk is not being able to collect the debt he owes you rather than losing the condo.
I don't see how he could force you to sell; there is a right to partition (court ordered sale) among co-owners, but he isn't a co-owner. A forced sale would come about only if one or the other of the lenders were to foreclose.
Re: Sticky mortgage situation with ex
The real question is who is the owner of the property? Title is in your name. The mortgages are in both of your names. What does the written contract say? What's to prevent your ex from saying he's a part owner of the property? Title is only a presumption of ownership, it's not conclusive.
Assuming you're the sole owner of the property, you will want to make sure all of the payments are being made. If the mortgages aren't paid, the lenders will foreclose. Your ex will just get bad credit while you'll lose the condo.
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