Legal Question in Real Estate Law in North Carolina

We are co owners of a vacation condominium with good friends. We owe $40,000-$80,000 more than it's worth and the friends have lost all income. We owe $210,000 on the property and we can handle the full mortgage by ourself. How can we present a legal option for them to get out of the committment and we can take over liability and sole ownership without refinancing which is not an option? Also, we would want all furnishings and they would walk away free and clear.


Asked on 1/11/10, 5:55 am

1 Answer from Attorneys
Jeff Rosner Rosner Law Firm P.A.

Unfortunately without refinancing, the bank would have to agree to release them which is not likely. You could still structure some type of agreement where you agree to make payments and they transfer the property to you but they wouldn;t have any protection against the bank in the event you were not able to make the payments at some point and the bank foreclosed and went after everyone for a deficiency. If you do something like this, I would recommend hiring an attorney to draft an agreement.

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Answered on 1/18/10, 5:52 am


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