deed vs mortgage - Posted by rob

Posted by Rich-CA on August 03, 2007 at 19:01:12:

These are two different things and do not go together. Deeds are about ownership and Mortgages are about debt. In this case ownership is two people but debt is only one.

To sell, all owners must agree (unless you get a court order), so he cannot sell without his live in agreeing.

Once sold, your friend will have to pay off the mortgage, but if he’s no longer on good terms with the live in, he may have only half the proceeds to do this with.

deed vs mortgage - Posted by rob

Posted by rob on August 03, 2007 at 14:27:07:

My friend is living w/someone. Both their names are on the deed; however, the mortgage is only in his name. Looking toward the future, can my friend sell anytime he wants (since the mortgage is completely his), or will his roommate need to concur (since she’s on the deed)? Thanks in advance…

Title & Domestic P’ships - Posted by John Merchant

Posted by John Merchant on August 04, 2007 at 08:07:58:

This problem bedevils lots of failed or failing relationships.

When all was rosy and platonic and no thought of future rocks in the road both p’s swore eternal harmony and took the deed in both names…then when things fell apart they both realize that both have to sign the deed to sell…and maybe both don’t WANT to sign.

Normally, if they both wanted on the title going in, the bank required both to be on the mortgage but it does happen like here that only one is on the mtg.

So what can they do now?

Well, as you’ve learned, ALL owners who have names on the deed have got to sign if a sale is to be made.

And frequently one P has no desire to cooperate in any way.

The law long ago came up with a legal solution called a Partition Action where a court is asked to order the sale of the RE and to split the proceeds as per the respective amounts paid in by the Partners.

So one P might have to file a Partition Action asking a court to order the sale of the property and ordering both/all Ps to sign a deed of sale.

These PAs normally don’t actually go to court because there is no way the others can prevent the sale, and frequently one or more of the other Ps elect then to buy the plaintiff-Partner out and the PA is settled in that manner.

Thus your friend may have to eventually file such a PA to force the other P to sign the deed.

The other P may well have made some of the payments and will have some money coming from the sale of the property and the PA will sort that out. Who gets what from the sale.