Advise Please - joint mortgage

[lvfnchs]

LOL! You're probably right - he probably won't agree to it. And I won't even think about doint the other one if it's fraud - the last thing I need is more trouble!

He's getting served today, and a friend is coming over tonight in case he flips. There are six possibilities of what may happen, that I can think of. If you can think of a possibility not mentioned here, please let me know. I'm going to put them in order of my favorite to my least favorite. I'll leave the first one, even though you are probably right and he wouldn't agree to it.

1. We can come to an agreement where he gets (either 30k or 42k - he put down 30 and wants fees that he put in for closing, etc but people don't usually get fees back, so I think I'm aiming towards 30k as being reasonable), I get 5k that I put down, plus another few thousand for the plumbing, stairs, extra mortgage and utilities I paid, and then we split the rest 50/50. Also, he would agree to let me get a wrap-around loan so I can buy another house before this one sells. This would benefit both of us - the house will undoubtedly sell for more if I'm not there with my stuff and my pets, and I would be out of the house.

2. We can come to an agreement where he gets 30k, I get 5k that I put down, plus another few thousand for the plumbing, stairs, extra mortgage and utilities I paid, and then we split the rest 50/50. We both live in the house until it sells.

3. Three and Four are really tied in terms of favorability. I buy him out for 30k and he has 30 days to leave. I give him 2500 or 5k (if I can come up with it) upon his signing the quit-claim, and then the rest by the end of January. He leaves, then I sell the house at my leisure, contingent on getting another house.

4. We go to court and the house goes to auction. A judge decides what happens to the money that comes out of the sale. The house will not sell for very much, so neither of us gets the amount we are looking for. We are told when we have 6-8 weeks to leave, and my pets go to friends' houses for maybe two months while I buy another house.

5. He buys me out. He could probably get a no-income-verification mortgage even without a job, and I would sign a quit claim if he paid me like 10k and time to buy another house. I put 5k down, plus have paid more on the mortgage/utilities, plus paid for improvements on the house (plumbing, stairs, etc.) If he could refinance and give me 10k and enough time to close on another house, then I could just go buy another house.

6. He does nothing after being served. In this case it would be like what Martha had to do, file something else stating that he didn't respond to being served.

Can you think of any other possibilities? How do you think this will play out? I am so nervous because he's being served today. Thanks very much for your replies.

 

[lvfnchs]

Hi again,

I'm looking into a "no doc" loan. Does anyone know about those? Are they good to get? Thank you.

 

[HomeGuru]

Check with your mortgage broker. No doc loans have a slightly higher interest rate and no doc means you provide no tax returns and other support documents normally requested by the lender on a conforming conventional loan application.

 

[lvfnchs]

OK thank you. The mortgage broker is the one who suggested it. I've been checking with all different lenders on the internet to see if there's any way to buy another house now, before the other one goes to auction and sells. It is miserable in that house right now. He just sits in the other room calling out obscene things all night. Maybe a no doc loan is the way to go! Thanks again.

 

[HomeGuru]

Just shoot him then.

 

[lvfnchs]

I would love to. I tried to get a restraining order on him, but the statutes in CT are very strict. It doesn't matter if he abuses the pets, damages property, or threatens me. He would have to actually hit me over and over. I'm shutting most of the utilities, as they are in my name only. Cut the cable and restricted the phone to those with a pin code. HAHAHA. I'm not trying to keep him from getting mad anymore, since it doesn't work anyway. Now I'm just going to do my thing, and if he flips out I'll call the police. If they can, they'll arrest him and then I can get a restraining order to get him out of the house. Maybe this no doc loan will work and I can close on something and just move out of there asap. That would be best. Then I can shut the electric too, and he can just sit on the floor in the dark. Or not. If it doesn't work out, then I'll just have to deal with him until the house sells. He has until August 12 to respond to the papers he was served for the partition action. And it is all thanks to you Home Guru, for shedding the light that I can do a partition action! Thanks again.

 

[HomeGuru]

Hey, no problem. Good luck.

 

[lvfnchs]

Here's an update in case anyone's curious. We both met with my lawyer last night. The deal that my realtor and I came up with was this:

We list the house for 215 for one month. If it sells for 210, I get 23 and he gets the rest, about 65/35%. If it sells for 200, I get 20 and he gets the rest, same split. If it doesn't sell the first month, we lower the price and split what we get 60/40%.

He didn't go for that. He wants an 88/12% split. I won't go for that. So my lawyer and I talked for a few minutes in private. When B got back, we had a new plan:

No matter what it sells for, after all fees are paid, I get the first 15. He gets the rest.

He should get back to my lawyer by the end of the week to say yay or nay. If he says yay, great. We can list the house right away. If he says nay, it's going to court. My lawyer says that if it does go to court (which he doesn't want), they will treat it like a divorce and all of the reasonings and events will be taken into account.

I will continue to keep you all updated. Thank you.

With regard to the new house, they have accepted my offer. I'm just waiting to hear more about the loan I'm getting.

 

[HomeGuru]

Ok, keep up the hard line.

 

[lvfnchs]

OK here's the deal he's coming back with. Do you think I should take this deal? He's saying that first we each get the money that we put down back, and then split the rest 50/50. I don't like that he gets so much money back, because I put in many nontangible resources and feel that I should be getting something back for that. Whatdya think? Thanks.

 

[HomeGuru]

What did you put in aside from hard cash and what would be the equivalent value in $$$$ of such contribution?

 

[lvfnchs]

What did you put in aside from hard cash and what would be the equivalent value in $$$$ of such contribution?

Thank you for the reply. I put in the following:

1. My credit - he could not get a loan by himself even with the large down payment - he was denied. I have/had excellent credit and that is what allowed us to get the loan. Even without the down payment, I could have gotten a loan by myself, but he wanted to be involved with it and I let him (my mistake).

2. Responsibility - from the time of closing, I have been the responsible party. I make the mortgage payment early each month and then he pays me back for half of it. He does not always pay me back in a timely fashion. Based on his history, the house would have foreclosed by now if he was the one in charge of making the payments. I also was responsible for all utility payments; I started the utilities and he never called to get his name on them. I was responsible for the financial upkeep of the property.

3. Legwork - I got everything set up. I found the lawyer, set up the appointments for the appraisal and inspection, did all of the liason work, made sure we were set to go, took care of his and my credit issues. He just showed up at closing and wrote the checks.

Do you think these would be worth squat? I'm now thinking this: the down payment was 30k. I put 4200 so he put 25,800. I also paid 1500 for plumbing and 200 for stairs to the attic. I would be fine if I got 5,900, he got 25,800 and we split the rest 50/50. If he wants 37k instead of 25,800, then I have a problem. Does that make sense? I think that, if he wants 37k, I should get something extra for what I contributed, albeit not financially. Thanks again for helping me to figure this out.

Earlier today I told the lawyer that I wouldn't go for this deal. He has told B but I don't know what B said. The lawyer has also filed a "failure to appear" or something, for B not responding to the papers he was served.

Finally, the homeowner's insurance is up this month and needs to be renewed. I think I'm just going to have to pay for it and eat the cost. Thank you again and I can't wait to hear your response.

 

[HomeGuru]

I agree with you in that you have valid claims of equity and contributions over and above the standard.

 

[lvfnchs]

Thank you for that

I've decided to let him sweat a little, as he has so much to lose if he decides not to negotiate. I rejected his offer and filed the failure to appear. He called my lawyer and left a message asking for a counter-offer. My lawyer is sending the failure to appear to B along with a letter restating my original offer of the 65/35 split, him getting 65%. Maybe he'll come up a bit. I'm giving it until next Monday to see if he actually wants to negotiate, or if it is all just talk. If it's all just talk, I need to decide if I want to just go along with what he wants to get this over with, or if I want to follow through with the partition action and let it go to auction.

Thanks again - it's good to hear that my claim is valid. What do you think my "valid claims of equity and contributions over and above the standard" are worth? Money/percentage?

 

[lvfnchs]

Hello again -

We've come to an agreement, as follows:

1. The agreement lasts until Oct 1, at which time it expires
2. The agreement can't be used in court
3. The house is listed between 210-215k, and we will not accept less than 200,500.
4. If the house sells, he gets 37k, I get 15k and the rest (if there is more) is split equally.
5. If he doesn't pay me half of the mortgage, it comes out of his 37k, and if he pays late there will be 5% interest accrued, also to come out of the 37k.

So that's it for now. He should sign it today or Tuesday and then we can list it. He still has no idea that I'm already set to close on another house Sept 15.

It turns out to be about a 70%/30% split. I think that's still fair, but anything less than 30% would not be fair to me.

So what do you think? Is it a good and fair deal? I probably could take him to the cleaners but it wouldn't be fair and wouldn't be worth the time and energy involved. I just want this to be over already. Thanks again.