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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 08-02-2006, 10:47 PM
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Question I want to buy him out

Hi, I'm new and computer illiterate but here goes.... My ex and I are both on title for the house that my 2 children and I live in. We haqve a private mortgage with his parents and the balance is approx 69,000. I offered to buy out his 1/2 for 35,000 which was turned down. He says that I have to pay the full balance if I want the house. His parents have now threatened to forclose even though their son paid the mortgage only occasionally over 10-11 years as I found out. I want title only in my name so the control and power are taken from them. Am I wrong to think I can buy out 1/2 of the owed mortgage on a house that has both our names on title?
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Old 08-02-2006, 11:15 PM
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raindrop,

You should get the home appraised. The home may be worth 100K with a 69 K mortgage. If this is the case a reasonable position would be to include in your buyout offer any equity in the home.

Perhaps they may just accept your offer.

lv
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Old 08-03-2006, 07:39 PM
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Think of it like this:

the house is worrth $100,000 (just making up numbers here)

You owe the bank (his parents) $69,000 - this is the part of the home neither of you own so if you want to keep the house you have to take responsibility

That means the house has $31,000 of equity - this amount is an asset and he is entitled to half.

So if you want the house, you owe him $15,500
And you owe the bank (his parents) $69,000

So go to a mortgage broker or a bank, get a mortgage on the house for $84,500, pay him his $15.5K, pay them their $69K and be done with it.

Hope this makes sense.
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Old 08-03-2006, 10:53 PM
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exactly.

With a certified professional appraisal in hand to back up your offer, he may not have any other choice than to sell outright, then closing costs real- estate fees 5% alone of the selling price would come off the equity before division. Makes economic sense to both that ones keep the asset and buys the other party out.

lv
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Old 08-26-2006, 06:35 PM
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If he owns 1/2 of the house, isn't he responsible for 1/2 the debt. He is still on title and the motive for all of this is not money anyhow. We have tried a counter offer of 41,000 but I am running into walls no matter what I try. Can't I do anything to make him respond via his lawyer any faster? I just want this train wreak over!!!! Also, he has an uncle here in town who is a judge. I don't know if this came from his uncle or not but my ex says the house has nothing to do with him, it is to be done thru my lawyer and his parents lawyer. Sorry, but in this case the Italian connections have me terrified of what they will do to me because they actually do have good connections.
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Old 08-27-2006, 10:24 AM
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raindrop,

If the matter is litigated, I believe the relative Judge would be in conflict of interest.

lv
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Old 08-27-2006, 10:42 PM
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This is very similiar to my situation. First of all if your ex's parents have a mortgage registered on the property when was it registered and is it registered or is it done though a promisory notes or writing up without being registered with the city you live in. It can get very complicated and expensive. I also have a refegistered mortgage with my parents, my ex has been fighting me saying it's fradulent. Well the burden of proof his on her.
However, it may bring up severel questions if you go to court. Has he made any payments to it, how was the mortgage writing up, is there interest payable or is is due upon demand.
Myself, I was fighting this for a while, luckly my wife and I got back together for now so it's been left alone for a while.
Good luck
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Old 08-27-2006, 10:42 PM
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This is very similiar to my situation. First of all if your ex's parents have a mortgage registered on the property when was it registered and is it registered or is it done though a promisory notes or writing up without being registered with the city you live in. It can get very complicated and expensive. I also have a refegistered mortgage with my parents, my ex has been fighting me saying it's fradulent. Well the burden of proof his on her.
However, it may bring up severel questions if you go to court. Has he made any payments to it, how was the mortgage writing up, is there interest payable or is is due upon demand.
Myself, I was fighting this for a while, luckly my wife and I got back together for now so it's been left alone for a while.
Good luck
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Old 08-28-2006, 11:47 AM
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Quote:
Originally Posted by raindrop
If he owns 1/2 of the house, isn't he responsible for 1/2 the debt.
I don't think you quite understand. The house is not a debt. If you were to sell the house, you would have $31K (by my earlier example). Of that 31K, you would take half and he would take half and neither of you would have a house.

So there is no debt to be responsible for. It is an asset.

If you want to buy the house, you have to give him his share of the equity (asset) and assume whatever is owing on the house. In return, you get to keep the full value of the house.

He is going to expect you to take over the entire amount owing ($69000) plus pay him half the equity. That is what's reasonable. The only dispute will be how much the house is actually worth and therefore how much equity there is in the house.
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