Legal Question in Real Estate Law in California

Re: Unmarried persons bought a home

Yes, he certainly does!

However, the bottom line here is not easy to compute or predict. There are some competing legal issues and some facts that are missing.

First, how do they hold title? Are both names "on the deed?" If they are shown as tenants in common, does the deed show anything other than 50-50 ownership?

Is there any written or even unwritten agreement between them or anything that would lead a judge or jury to conclude that he meant to make a gift of the (whole) house to her?

So, the possibilities include (1) that he made a gift to her and she owns 100%; (2) that they each own 50%; (3) that ownership divides 25% him, 5% her in line with the down payment, or (4) that, due to some agreement between them, some other outcome would be awarded by judge or jury.

In my opinion, it is most likely that he is entitled to 25/30 of the net equity and she is entitled to 5/30, in proportion to their down payment contributions. This guess is based upon a legal principle called "purchase money resulting trust" which holds that, irrespective of how title is held, actual (equitable) ownership divides along down-payment lines. If this theory could be made to hold up, he would come out best.

The question doesn't end with deciding what the ownership percentages in the house might be. In any case dividing co-owned property, there are questions of restitution for payment of expenses, rental value, whether one owner has ousted the other from possession, and so on.

Other issues this man must face are whether his child-support obligations are current, and the credit impact of allowing a foreclosure to proceed.

All in all, I think he MUST become involved in protecting his (likely) interest in the equity in the house and also his credit rating. There is maybe 75 grand at stake. If he doesn't participate in the foreclosure process pro-actively, the foreclosing lender or trustee may only give him 50%, maybe nothing, when he may be entitled to more.

He needs a real estate lawyer soon.

Re: Unmarried persons bought a home

What you never sad was whether or not they were married and/or divorced. Is there any written agreements which deal with the situation and require her to make the payments. Whenever requirements are made of her, he has the right to bring current payments on the House should do so immediately. You never once a foreclosure on your record not only for credit reporting purposes but also for realistic financial reasons. Additionally, financially you will be losing a great deal of equity that you otherwise have right to. My immediate responses you must get an attorney in real estate who can help you. If you can find one who does both real estate and family law that would be even better. Immediate action must be taken in both dealing with the real property and getting proper legal advice at this point. Too much is hinged on the situation. In action or the wrong action can be substantially detrimental for a long time in the future.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.

Re: Unmarried persons bought a home

Is he still on title? If so, he is eneto 1/2 the equity and possibly the original $25K that he put down. If he removed himself from title, but not from the loan, he could have a serious problem. He needs to contact an attorney who can look at the whole picture in order to give accurate advice.

Re: Unmarried persons bought a home

Your boyfriend is entitled to some amount of the equity in the home. Even if he is not currently on title to the home, he may be entitled to at least a return of the amount he invested in the home, together with some portion of the equity. The immediate problem is to cure the default which resulted in the mortgagor foreclosing. If the foreclosure proceeds to sale, as a practical matter he may be out of luck. As the other attorneys have indicated, he needs to see an attorney immediately, preferably one with extensive experience in real estate and real estate litigation. Someone who has practiced in real estate for a long period of time has probably gained enough knowledge about family law to help him, because the two areas frequently overlap.

What is important is that your boyfriend seek the assistance he needs immedately. If he waits too long he will lose substantial legal rights.