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Old 06-29-2015, 06:20 PM
 
Location: Melbourne FL
5 posts, read 9,107 times
Reputation: 15

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I co-own a house with a friend and co-worker in which we both live. We are both on the deed but only he is on the mortgage.

We purchased the house for $200,000 in 2013 and we put $50,000 each down. The house is now valued at around $285,000.

We have had a falling out in both the business and the responsibilities of the house as well.

A mutual friend has alerted me that he told him he took a mortgage out on the property for the equity in the home. My friend tells me his plan is to loot the full equity and then squat in the house till the bank takes the property.

He has never had me sign anything and I was under the impression he could not do that without my consent.

Is this legal in the state of TN? And if it is, what is my recourse as a co-owner of the property?

I am going to speak to a real estate lawyer tomorrow to see what can be done but I was wondering if anyone here has ever had a similar situation.

Thank You
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Old 06-29-2015, 06:42 PM
 
Location: Phoenix AZ
5,920 posts, read 10,451,397 times
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Those records are usually available online & free. Might want to google your county name & "register of deeds". Definitely lawyer time in any case.
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Old 06-29-2015, 06:42 PM
 
28,384 posts, read 67,971,595 times
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This is less a real estate issue than potential community property. Are you married? You should be...
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Old 06-29-2015, 06:47 PM
 
253 posts, read 235,928 times
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I believe he can, in some cases, take out a mortage on his halfof the house. The bank can't foreclose but can put a lien on the house and you essentially have to buy his share from the bank if you want to sell.
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Old 06-29-2015, 11:04 PM
 
Location: Melbourne FL
5 posts, read 9,107 times
Reputation: 15
No we are not married. We're just two roommates who worked together and decided to buy a house because we had saved up some cash. My wife and I live in the one part of the house he lives in the other. Everything was going well until we had a falling out at work. I'm his boss and he's a higher level employee at my company.

If he stops paying the mortgage and goes into default, that's a big problem. I can pay the mortgage on my own but then he will just be getting me to pay the mortgage for free. I'd gladly take over the house from him and buy him out but not if he's already looted the equity
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Old 06-30-2015, 05:57 AM
 
10,274 posts, read 6,510,807 times
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Quote:
Originally Posted by Paulie1972 View Post
No we are not married. We're just two roommates who worked together and decided to buy a house because we had saved up some cash. My wife and I live in the one part of the house he lives in the other.
Divorce your wife and marry him.
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Old 06-30-2015, 08:32 AM
 
6,360 posts, read 7,333,983 times
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This sounds like a mess. It goes without saying that with $50K down, you should have bought the house yourself.

Anyhow...did you have legal advice when you purchased the property together? How do you hold title--is it as Joint Tenants or as Tenants in Common? With Tenants in Common, each interest can be sold separately (without the approval or even knowledge of the other), so it might be possible for a lender to secure a loan against a Tenant in Common interest, although I've never personally encountered that. I rather doubt that a lender would knowingly do that.

You should first determine if your co-owner has, in fact, placed another mortgage on the property. Any mortgage would need to be recorded--but if it was done very recently, there may be a lapse in time when recorded documents show up in online (or even in-person) searches. Your local recorder's office should be able to tell you how current the records are kept.

Well, let us know what your attorney tells you. If it seems like this owner-relationship is going down the tubes, you may need to sue to force a sale and divide the proceeds.
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Old 06-30-2015, 11:36 AM
 
5 posts, read 4,235 times
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Is there any way to force a sale to me personally even at fair market value? Or would have to be sold to a separate individual?
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Old 07-01-2015, 05:12 PM
 
Location: MID ATLANTIC
7,602 posts, read 17,634,581 times
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Attorney. Now.
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Old 07-01-2015, 05:47 PM
 
6,360 posts, read 7,333,983 times
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Quote:
Originally Posted by Paulie1972 View Post
I am going to speak to a real estate lawyer tomorrow to see what can be done but I was wondering if anyone here has ever had a similar situation.
Well, what did your attorney have to say?
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