Legal Question in Real Estate Law in Illinois

I bought a home with a co-mortgagor 5 years ago. We agreed to split all costs 50/50. We are now underwater on our mortgage and the co-mortgagor has walked away. I cannot refinance because we owe so much more than the home is worth.
Alone, I would qualify for a modification, but I do not qualify for a modification because she is still on the mortgage.
I applied for an assumption of her part of the loan. My application was denied. They said I do not have enough income to approve the assumption.
What other options do I have to keep my home? Do I have a legal right to go after her for her half of the mortgage payment? We agreed to split the payment at the time of purchase.

Asked on 12/12/09, 8:05 pm

Joseph Michelotti Michelotti & Associates, Ltd.

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The easiest thing to do would be to have her quit claim her interest to you. Then you would have ownership of the house.

Otherwise you could file a partition action. This would force her to be responsible for the debt.

Third, you could get her to work the mod with you.

Answered on 12/20/09, 12:35 pm

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