housing issue

[prsdeb]

What is the name of your state? New York

My partner and I purchased a home together 3 years ago. The mortgage is in her name while the deed is in both our names. All monthly mortgage payments along with utility bills have been split down the middle with each of us paying half. We are very possibly going to split up.
My partner doesn't want to sell the house and wants to buy me out. I'm fine with this but want to know if I'm entitled to at least half of all the mortgage payments that were made.

[nextwife]

Originally Posted by prsdeb

What is the name of your state? New York

My partner and I purchased a home together 3 years ago. The mortgage is in her name while the deed is in both our names. All monthly mortgage payments along with utility bills have been split down the middle with each of us paying half. We are very possibly going to split up.
My partner doesn't want to sell the house and wants to buy me out. I'm fine with this but want to know if I'm entitled to at least half of all the mortgage payments that were made.

Entitled to be paid BACK? Why? Weren't you using the housing too?

[LdiJ]

Originally Posted by prsdeb

What is the name of your state? New York

My partner and I purchased a home together 3 years ago. The mortgage is in her name while the deed is in both our names. All monthly mortgage payments along with utility bills have been split down the middle with each of us paying half. We are very possibly going to split up.
My partner doesn't want to sell the house and wants to buy me out. I'm fine with this but want to know if I'm entitled to at least half of all the mortgage payments that were made.

Absolulely not. You are entitled to 1/2 of the equity in the home...period. If the home has no equity due to the current housing market, then you are entitled to 1/2 of nothing, unfortunately.

Your share of the mortgage payments provided you housing for the last three years. Either some, or all of what you spent in mortgage payments, paid for that.

[prsdeb]

So you mean to tell me that even though the deed is in both our names it's as if I was just a tenant paying rent all this time? Everything from the mortgage application fee on up was split 50/50 between us when purchasing the house. If I was renting from someone I wouldn't have had to put out money to pay for the initial purchase of the house. We're both reasonable people......she's willing to help me out and I'm certainly not looking to make things ugly but I can't believe I'm not entitled to anything.

[LdiJ]

Originally Posted by prsdeb

So you mean to tell me that even though the deed is in both our names it's as if I was just a tenant paying rent all this time? Everything from the mortgage application fee on up was split 50/50 between us when purchasing the house. If I was renting from someone I wouldn't have had to put out money to pay for the initial purchase of the house. We're both reasonable people......she's willing to help me out and I'm certainly not looking to make things ugly but I can't believe I'm not entitled to anything.

You are entitled to 1/2 of the existing equity in the house....if there is no equity, then there is no equity. Its no different than if you sold the house and split the proceeds. Would you expect to get back every penny you spent in mortgage payments if the house was sold? Hopefully you wouldn't because of course that would be impossible.

Everyone's mortgage payment is similar to paying rent. Its paying for your housing. The advantage is, that over time, you build equity so you have something to show for your payments as well as paying for your housing.

Unfortunately, three years generally isn't long enough to build up any significant equity in a home....particularly in today's market.

[prsdeb]

OK, let me ask you another question. You said "Its no different than if you sold the house and split the proceeds". She doesn't want to sell the house.
The house was assessed at 63,000 and we bought it for 56,000. We've also made additional payments on the principal. So, just for the sake of argument, let's say we could sell the house for the 63,000 it's assessed at (and even in today's lousy market it would probably be more because we made some major updates). Aren't I losing out on possible monies since she's not willing to sell?

[LdiJ]

Originally Posted by prsdeb

OK, let me ask you another question. You said "Its no different than if you sold the house and split the proceeds". She doesn't want to sell the house.
The house was assessed at 63,000 and we bought it for 56,000. We've also made additional payments on the principal. So, just for the sake of argument, let's say we could sell the house for the 63,000 it's assessed at (and even in today's lousy market it would probably be more because we made some major updates). Aren't I losing out on possible monies since she's not willing to sell?

Ok...lets say that you paid down the principal to 53,000, and you could actually sell it for 63,000. Selling costs would probably be around 4-5 thousand, leaving 5-6 thousand for the two of you to split in half.

That's assuming that you could actually sell it for 63,000 in today's market. If it appraises at 63k, I wouldn't necessarily hope to get more than 60k.

Anyway, if it was certain that it could be sold for 63k, then it would be fair for you to receive 2500.00 to 3000.00 whether the house is sold or she keeps the house, because you would be receiving your half of the equity.

[prsdeb]

OK.....thanks for your advice. I understand a little better how all this works.

[nextwife]

and remember, if you were actually selling the house, there would be additional closings costs and commissions.