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Buy Out vs Partition for Short Sale or Foreclosure

On Lawyer & Legal » Real Estate & Property Law

4,178 words with 4 Comments; publish: Tue, 04 Aug 2009 20:19:00 GMT; (80062.50, « »)

My question involves a foreclosure in the State of: AZ

My boyfriend and I bought a house 3 years ago. I put in $90K, he put in less. Our house is now worth about 40% less than we paid for it. Even putting $90K in we are still underwater by about the same. He doesn't want to pay me to buy me out, but would like the house. I'd like some payment so that I can go find a place to live. If he won't settle with me, can I file for partition without a lawyer? Ultimitly if we do, since we are underwater, that will result in short sale/foreclosure, is that correct?

Do I have any other options?

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    • To answer this question, yes I don't trust that he will continue to pay. He could pay it, but it will take all of his disposable income to pay for the house. If I were him I may someday wake up and think "why am I strapping myself to pay for a house that isn't worth what I owe". Being responsible, I wouldn't walk away. (I am because the mortgage is exactly what I bring home each month, and I wouldn't be able to pay for other necessities such as food) But I'm not 100% that he wouldn't. As well, if I take the hit now, I know when I'm starting over. If we float by 3 years and he decides to let it go then, then I'm at his mercy.

      So far when discussed he says he wants the house, doesn't want to give me anything. I will discuss equity share for the future with him. I see both sides, that's why I'm trying to get advice from others.

      We are trying counseling for now. Hopefully I will never need this information!

      #1; Fri, 14 Aug 2009 17:03:00 GMT
    • The reason I said it would ultimatly lead to short sale or foreclosure is, if we are ordered Partition, our house is worth far less than we paid for it. So if we put it up for sale, if we got an offer, it would be less than we owe, meaning the bank would have to accept, or eventually it would not sell resulting in us foreclosing.

      He said he looked into getting the mortgage in his name only but they told him it would be a "refinance" and the home isn't valued high enough for him to get a loan in the same amount that we currently owe.

      Any ideas how I can file for partition on my own? Do I just go down to the court house? As or our "stuff" inside the house, do we just split it? What about joint purchases? Does that fall under "whom ever signed for it is responsible for the bill?"

      #2; Sun, 09 Aug 2009 17:31:00 GMT
    • First of all, I'm curious about why you want to file for partition? What is it you are looking to acheive? Is it a matter of not trusting your boyfriend to pay the loan, so you don't want your credit at his mercy, is it a matter of being vindictive? You seem to understand that you won't realize anything from a sale, so that can't be the reason.

      To answer your question, you can "file" for partition by filing a complaint for partition, it's a lawsuit like any other. And, like any other kind of complaint, you can file it yourself if you feel comfortable doing that.

      However, I would suggest you try to work a deal with your boyfriend instead, if he's capable and willing to pay the mortgage alone. You guys might want to take a look at doing an equity sharing agreement, with an eye to the future; if he really is attached to the house, but - entirely understandably - doesnt' want to pay you anything when you have both lost everything you invested, come up with some kind of agreement that lets him stay and pay the mortgage, and down the line if there is a way he can refinance it, THEN he can pull a few bucks out of it to give to you. There's lots of ways it can be done.

      Because the most you can hope for from a partition lawsuit is a lot of work and hassle and in the end, at best, a short sale if you're lucky.

      And who I am is your boyfriend 3 years ago, and we're still not done with this nightmare.

      WAY too long to explain, I have to get back to my appeal....

      #3; Sun, 09 Aug 2009 19:29:00 GMT
    • If you can figure out how to file a lawsuit for partition and sale without the help of a lawyer, you may do so. There is nothing in a lawsuit for partition in sale that would either necessitate foreclosure or force a lender to approve a short sale.
      #4; Thu, 06 Aug 2009 18:39:00 GMT