How a co-owned home can become a nightmare. What is the solution?

What can Susan do to resolve the situation before she has a foreclosure on her credit and loses all the equity in the home?

Susan and Tom bought their dream home together seven years ago for $450,000. They both put money down to buy it, sharing the closing costs but only Susan qualified for the $400,000 mortgage, so only her social security number was used for the debt. The house is now worth $600,000 and the mortgage is $350,000.

Mortgage payments are past due

Unfortunately, seven years later Susan moved out as Tom was aggressive after losing his job. Susan can’t pay the entire mortgage and apartment rent, but Tom stopped contributing to the mortgage once Susan left and he is now living in the house for free. Susan asked Tom to sell it, but he refused as he wanted her credit damaged as revenge for her leaving him and doesn’t want to move and start paying rent. A year has passed since Susan left and now the mortgage payments are past due 60 days and foreclosure may be filed.

What can Susan do to resolve the situation before she has a foreclosure on her credit and loses all the equity in the home? A partition suit is the answer to Susan’s problems.

Florida Statute 64 entitles a co-owner to ask the court to sell a property when the other owner won’t agree. So, Susan should file a Partition Complaint and ask the judge to order the house sold, even over Tom’s objection, to resolve the past due amount owed on the mortgage and prevent foreclosure.

Partition Lawsuit

Also, the judge then will help Susan by determining how much of the equity she is entitled to receive out of the net sales proceeds. Susan would need to show the judge how much each owner contributed to the downpayment, closing costs, taxes, insurance, and mortgage plus any major repairs. Both Susan and Tom put down $25,000, and the taxes and insurance are part of the monthly mortgage payments, but Susan paid $5000 for the new air conditioner unit and $10,000 more towards the mortgage payments than Tom. If the house sold for $630,000 and Susan and Tom netted after paying the mortgage and closing costs $150,000 then the judge would divide the money 50/50 with both Susan and Tom receiving $75,000 but then the judge would require Tom to pay Susan $7500 for his half of the air conditioning unit and mortgage payments.

So, a Partition Lawsuit saved Susan from foreclosure and netted her $82,500!! Let a partition suit be the solution to your co-ownership nightmare.

Renee Marie Smith is a Florida Practicing Real Estate attorney since 1997 and offers free consultations to advise on your real estate issues. [email protected] 866-839-1192 www.reneemsmithesq.com

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