partition suit

[hesthedevil]

What is the name of your state (only U.S. law)? KY

I own a home with my ex (unmarried). It's long and complicated, but essentially what I need to know are some answers about a partition suit. I have searched here and online, but everything just says a judge will split things equally. My home is one year behind in payments bc the mortgage company stopped accepting my half-payments and then returned checks to my ex. He refused to hand them over, so the bank and I agreed it no longer made sense to keep sending the payments. The bank is willing to help me with a loan mod if ex signs QCDeed, which he refuses to do at this point.

My question in the partition suit is this-do judges ONLY order the home sold and split the loss/equity OR do judges ever allow one party to keep the home? Approximately 240,000 is owed, but only one offer of 170,000 was received so the house is under water. I know it is not the best financial decision to keep the home, but my kids have been through a lot of changes, and I would like to keep them in this school district.

Does anyone know the answer to that question or where I can find out more details about partition suits filed in ky where there is a shared minor child and property involved? Thanks in advance!

 

[Rexlan]

This was generally done to split property for sale because the owners could not agree on a buyout or sale. In your case this can probably only be accomplished through a sale of the home because it is in divorce settlement. It is very unlikely that the court will force the X to sell his share to you, but likely the court will order the property sold.

Making partial payments was very foolish ... don't do that.

Your best outcome may be to allow the property to go into foreclosure and this will take a good year. When it does you may be able to buy it back if you really want this particular property. Your banks willingness to work with you is only because they very much would like to get a fresh contract to avoid the foreclosure.

You should negotiate a mortgage reduction instead refinance which can be done directly or by listing the property as a Short Sale with 3rd party approval. Since you only got a $170K offer that is all it is worth and the bank is painfully aware of this. Experienced investors and realtors won't give a SS much time or effore because of the low success rate of closing but it's worth a shot.

If you go to foreclosure you and the X will both take a good hit on your credit. It may, however, persuade him to be more reasonable when it becomes eminent. Either way, I would certainly ask the lender for a mortgage adjustment or offer them a Deed in Lieu of Foreclosure. This will have far less impact that an actual foreclosure on your credit history. This tool is used to simplify the procedure and to eliminate some of the tax consequences to the lender.

Some good info and an explanation of 'Partition' is here.
http://www.jdsupra.com/documents/ea078a1a-d0f7-4576-8653-8d300f78042d.pdf

Good luck on the battle!

 

[hesthedevil]

We were not married, so it is not divorce. We were "domestic partners" with a child in common. From what everyone says here, a partition suit is necessary bc ex will not move to sign the QCD.

I cannnot afford an expensive partition suit if it is just going to end with the sale of the home. My credit is destroyed, and I certainly can't be approved for a mortgage at this point. The mortgage company is not willing to do an assumption bc of my credit, but the are willing to modify the loan internally so that I can get back on track for a refi.

So the "mortgage reduction instead refinance" means the mortgage company reduces the mortgage in an effort to lower the monthly payment? The mod they are offering me now signifcantly reduces the monthly payment, but it tacks on all of the missed payments to the end of the loan, making it closer to 260,000. It's a good deal for the bank.

 

[Rexlan]

A mortgage reduction reduces the principal of the loan amount which automatically restructures the payments. A refinance just restructures the loan rate and typically adds debt, a lot of debt in the end. A Deed in Lieu of Foreclosure give the property back to the lender and erases the debt in total. This avoids the lengthy foreclosure process and associated costs.

I would let the property go ... that will be your best outcome. Kids, school, bla, bla, bla ... not really a big issue and more of an adult rationalization. I'm sure your X has a different take on the situation and there is much more to the story.

You are right, a lawsuit can easily cost $8-15,000 and the probable outcome will be a court ordered sale.

Good luck.