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Partition on Property with a Mortgage

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jih7171

Junior Member
What is the name of your state (only U.S. law)? FL

I have a question about a partion being filed by my ex husband. The join property is $60,000 upside down and we do not qualify for any short sale or other option through the bank.

Can the court force the sale of the property if there is a mortgage? If so, how will that work? What happens to the remaining amount owed?

Thanks,
Jen
 


tranquility

Senior Member
Can the court force the sale of the property if there is a mortgage?
The court cannot force the mortgage holder to take less than their lien. Cramdowns are not (yet) legal.

But, they can force the owners to sell.

See if you can guess how they do it. (Hint: the owners need to.....)
 

jih7171

Junior Member
I'm not very good at guessing games, sorry! And I'm totally stressed out so I have even less of a chance at guessing the right answer.
 

jih7171

Junior Member
So if we don't have the money, does that mean we would just have a judgement against us?

I don't understand how that would work. I don't have $30k just lying around. If I did I would have refinanced the home earlier.
 

tranquility

Senior Member
How would WHAT work? How about asking your real questions?

Partition won't be granted if you don't have the money. The other party will just have to wait with you for foreclosure.
 

jih7171

Junior Member
How would WHAT work? How about asking your real questions?

Partition won't be granted if you don't have the money. The other party will just have to wait with you for foreclosure.
I am very confused and stressed and am not sure what to do. I would ask the correct questions if I knew what to ask. If you don't want to help me you don't have to respond to me.

I don't think I can get the property refinanced and he's going to file the partition no matter what. I want to know what will the court most likely decide when there is such a negative equity in the property?

I can't plan for the fall out if I don't know what would happen? Would the court decline the suit because there's nothing to split? Would they demand the sale at auction because there's no way I can sell it for what is owed. At auction the negative equity would be even larger.
 

tranquility

Senior Member
I am very confused and stressed and am not sure what to do.
I disagree. You don't like what is being said. As to what to do, get an attorney.

I want to know what will the court most likely decide when there is such a negative equity in the property?
They will combine the partition with a foreclosure. See Lambert v. Lambert, 403 So.2d 484:
Lambert properly requested partition incident to his request to modify. See Horn, supra. Because he met the pleading requirements of § 64.041 governing partition, see Cyphers v. Cyphers, 373 So.2d 442 (Fla.2d DCA 1979), and because he had a right to immediate possession through modification of the original dissolution decree, he now has a right to partition as a tenant in common. Condrey v. Condrey, 92 So.2d 423 (Fla. 1957). Because we held in the companion case, Lambert v. Dracos, 403 So.2d 481, that the foreclosure proceeding on the second mortgage was invalid, Lambert's one-half interest in the marital home remains, and he thus demonstrates the requisite standing to request partition.

The lower court may wish to consider as a proper exercise of its discretion whether Lambert's right to partition the former marital home would not be best achieved by consolidating the mortgage foreclosure and partition actions into one proceeding. It has long been observed that equity rejoices in doing complete justice, and not by halves. Skillman v. Baker, 142 So.2d 113 (Fla. 1st DCA 1962). Moreover, equity can intervene to protect a multiplicity of suits. See Realty Bond and Share Co. v. Englar, 104 Fla. 329, 143 So. 152 (1932); Connell v. Mittendorf, 147 So.2d 169 (Fla. 2d DCA 1962). And, finally, equity may stay its own proceedings and consolidate causes for trial. See Terra Ceia Estates v. Taylor, 68 Fla. 261, 67 So. 169 (1914).

The equitable remedies of partition and foreclosure are compatible in the instant case. A mortgagee is a proper party defendant in a partition suit, Miles v. Miles, 117 Fla. 884, 158 So. 520 (1935), and a defendant to a partition suit may be allowed, as part of the partition proceedings, to foreclose a mortgage on part of the land sought to be partitioned. See Burney v. Dedge, 56 So.2d 715 (Fla. 1952). Therefore, now that the foreclosure decree has been vacated, should Dracos elect to file a subsequent foreclosure action against appellant, the trial court may wish to decide whether it should be done incidental to any partition suit which appellant may wish to prosecute. Thus, the trial court, if it desired, could adjudicate the several rights of the parties in a consolidated proceeding and thus avoid a multiplicity of suits. Miles v. Miles, supra.

A further question remains as to whether Lambert is entitled under Chapter 64, Florida Statutes, to a partition in kind or an outright sale of the property. Lambert alternatively prayed for both remedies in his petition. However, he did not plead an uncontested allegation that the marital home was indivisible pursuant to Section 64.061(4). Therefore, on remand, the trial court should permit Lambert to amend his petition by alleging, if he can, that the home is nondivisible. Moreover, it may be necessary for the court to appoint three persons as commissioners to make a report concerning whether partition can be made without prejudice to the owners. See Section 64.061 and 64.071(1), Florida Statutes. The latter section provides:

If the commissioners report that the lands of which partition is directed are so situated that partition cannot be made without prejudice to the owners and if the court is satisfied that such report is correct, the court may order the land to be sold at public auction to the highest bidder by the commissioners or the clerk and the money arising from such sale paid into court to be divided among the parties in proportion to their interest.

488*488 If a partition sale is ordered below, all of the rights of the parties could be adjudicated in one proceeding, and the sales involved in the two actions could be "divided among the parties in proportion to their interest." Section 64.071. It has been observed that a judicial sale which is conducted to carry out the provisions of a suit for partition is governed by the same general provisions as a suit for foreclosure. See Grable v. Nunez, 66 So.2d 675 (Fla. 1953); 12 Fla.Jur.2d, Cotenancy and Partition, § 105 (1979). Thus, should the court decide to consolidate the two actions, the traditional equitable rules as to priority of liens and equality of distribution should be followed in the partition proceeding. Some adjustment should be made in favor of the appellee and Dracos for the improvements to the property to the extent that it adds to the value of the property. See 12 Fla.Jur.2d, Cotenancy and Partition, § 67.

We do not intend by this opinion to foreclose the possible remedy that the parties may voluntarily agree to cooperate and jointly sell the property without the aid of the court to maximize the sale price. See In re: Marriage of Jones, 357 So.2d 439 (Fla. 2d DCA 1978). Or, the parties may wish to arrive at their own settlement, which may prove to be the most equitable to all parties concerned. Cf. Sherlock v. Sherlock, 396 So.2d 196 (Fla. 1st DCA 1981).
 

jih7171

Junior Member
I disagree. You don't like what is being said. As to what to do, get an attorney.

What I don't like are answers that talk around my actual question.

I have an attorney and all he says is that it would be best to sell the house as a short sale instead of going to auction.

No one explains to me how this short sale or auction would work and how the bank is envolved.

You provided a case example but it doesn't say if the home was already in foreclosure or if they were current on their payments. If the home was alreay in foreclosure I can understand them being combined.

However, why would there be a foreclosure on a property that is paid current? Can the court force the mortgage company to foreclose?

I know I would not qualify for a short sale through my mortgage company or a deed in lieu.

Again you don't have to be nasty just because I do not understand your "non-answers".
 

LdiJ

Senior Member
I disagree. You don't like what is being said. As to what to do, get an attorney.

What I don't like are answers that talk around my actual question.

I have an attorney and all he says is that it would be best to sell the house as a short sale instead of going to auction.

No one explains to me how this short sale or auction would work and how the bank is envolved.

You provided a case example but it doesn't say if the home was already in foreclosure or if they were current on their payments. If the home was alreay in foreclosure I can understand them being combined.

However, why would there be a foreclosure on a property that is paid current? Can the court force the mortgage company to foreclose?

I know I would not qualify for a short sale through my mortgage company or a deed in lieu.

Again you don't have to be nasty just because I do not understand your "non-answers".
Ok...here is the deal. We don't know your ex-husband's motivation for filing for a partition when there is no equity in the home. We can assume that he wants off the mortgage (because you are living there) and believes that a partition suit is the way to make that happen, but we cannot know for sure. You have not provided that information.

If that is his motivation, then he doesn't realize that forcing the sale of the home isn't going to help him, because his credit will still be hit hard. If the two of you don't have the money to make up the shortfall, and the bank will not agree to a short sale or deed in lieu, the partition suit will fail.

So, what is the backstory here? Where is the rest of the information?
 

HomeGuru

Senior Member
I disagree. You don't like what is being said. As to what to do, get an attorney.

What I don't like are answers that talk around my actual question.

I have an attorney and all he says is that it would be best to sell the house as a short sale instead of going to auction.

No one explains to me how this short sale or auction would work and how the bank is envolved.

You provided a case example but it doesn't say if the home was already in foreclosure or if they were current on their payments. If the home was alreay in foreclosure I can understand them being combined.

However, why would there be a foreclosure on a property that is paid current? Can the court force the mortgage company to foreclose?

I know I would not qualify for a short sale through my mortgage company or a deed in lieu.

Again you don't have to be nasty just because I do not understand your "non-answers".
**A: oh brother, not another one.
 

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