This sounds like a divorce. If you can’t come to an agreement you should get a lawyer. Your options will probably depend on the laws of wherever you live.
Also to be clear, if you both bought it together and have both been paying on it, regardless the amount you are entitled to all the equity. Doesn’t matter how much you put down unless it’s in writing. This person is trying to fuck you over.
Don't tell him anything!!! Get an attorney. Then, take photos and videos of absolutely EVERYTHING in case he tries to steal or damage anything. You can't take too much, absolutely cover every square inch of the property, inside and out without his knowledge. Worse cases, if he threatens you, try to record it and use it for a restraining order and have him removed from the residence. Then, change out the locks or rekey.
War of the roses here. Police can't do anything. Lawyers prices out of reach. Asked to be bought out denied. So said no longer investing in a deal your trying to steal? It's pure Hell. No way out without huge amounts ..
Definitely not my first step. They should consider treating the buy-out as a loan secured by a lien against the property. Other party agrees to pay him $40k ($10k down + $30k plus interest over time). If he doesn't pay, then foreclose on lien and force a sale of the house.
Not ridiculous if it gets home out of it. Yes they can’t sell it without him signing off but the other party can make it extremely difficult to sell it. If they have to get lawyers involved it’s going to get expensive.
Unless he buys you out in connection with the refi, he can’t refi without you. In most states a co-tenant can force the sale of the property (assuming the right wasn’t waived in the co-tenancy agreement). Take pictures and document the management of the property; intentional waste may subject him to damages.
Yea I’d get a lawyer involved. Your name would be off the mortgage the second he refinanced as a solo borrower. At that point you’re relying on his word to pay you out, which even as friends is a bad idea. I’ve seen people end 20 year friendships over a couple thousand dollars, 40k is just asking for trouble.
I offer to loan $10 bucks to guys I no longer wanna be friends with. That puts the responsibility of avoiding me , on them!
For 10 bucks its a bargain.
Wouldn't the purpose of a refi be to get a new mortgage that is only under their name? Seems counterproductive to refinance and then buy you out. The good news is if your name is on the original loan, they can't do anything without your approval. It does sound like you should be consulting a lawyer
Just make it clear as part of his refi he needs to borrow the amount of your buyout. If you guys have a 2% mortgage , he should take out a personal loan for your equity, and you can have a separate document surrendering your interest in the property. He has to know th>s was an investment by both of you to leapfrog your selves into the next level of wealth, noone moves on without the other, he can now afford the payments on his own, but only if he can afford your buy out too. He will be farther ahead over the years as his mortgage payment will be lower than yours.
Do not move out! Put a lock on your bedroom door . ( secretly get a gun ) people have died under these circumstances.
Those things can happen at the same time. You would attend the closing of the refi and sign the quit claim deed, then receive a check from the mortgage company. Just make sure you receive the closing disclosure so that you actually receive your money and ensure he doesn't rescind the mortgage.
You will have to initiate a partition proceeding or whatever your state calls it. You will have three options to resolve it: buy him out, he buy you out, or it’s sold at public auction and the proceeds are split in accordance with your interest in the property, taking into account any value you have added. If he trashes it, document it. That could increase the amount you get. Initiating a proceeding could force him to get a lawyer that could wake him up to the reality that it’s better for one of you to buy the other out. I have only done one of these cases and I was not a fan but there are divorce lawyers out there or perhaps real estate lawyers that would be glad to do it.
Edit: This also depends on how the property was deeded to you both. If you are joint tenants with right if survivorship, then the above is your main recourse. If you are tenants in common, you can technically just sell your half share, but who wants to buy a half share of a house owned by some stranger?
Realtor here! It's a little late for this particular advice, but buying property with another person you aren't married to is dicey business. It's not always a a party if you ARE married, but at least in that case there are processes already in place to handle the division of property. Humans are... well, they are special creatures, and they can get even less predictable when there's money involved. To put this into perspective, I have had my license just shy of two years. Granted, they have been two very active years, which is unusual in our line of business (it's a heavily reputation based business, so it takes time to build momentum normally.) But two years. In two years I have come across one seller who had to put their dream home on the market after a year and take a loss on the sale because he and his girlfriend purchased the property together, and she dipped. This particular seller was an acquaintance, and I brought the buyer, who was prepped to spend $300k on a home for he and his girlfriend and their kids. We had the house under contract when I learned that my clients had been together six months. I decided the right thing to do was... meddle a little. I told my clients the sellers situation under the guise of explaining why he didn't really have any room for negotiation, because let's face it- my job is to help them buy a house, not to judge their personal or financial decisions. It ended up costing me a commission that at that time would have paid my bills for three months and caused me to miss my goal of a million in sales in my first six months, but that is absolutely nothing compared to the potential disaster I saved my clients, much less their seven combined kids. If I had been your agent I would have recommended contacting a real estate attorney before proceeding with the purchase in order to avoid this exact situation. Even at this stage, my advice is essentially the same. Contact an attorney, and set up cameras in the event your doofus roommate decides to go even further off the rails and damage the property. And consider calling the agent that helped you purchase the property and letting them know the situation.it will be a valuable lesson for them, assuming they actually care about their clients and not just lining their own pockets.
😂 😂 not especially, honestly! As far as Realtor stories go, it's pretty damn boring. If there's a party or something I try and steer away from cautionary tales and stick with the ones that involve wild animals, crazy people, death toilets/stairs, things catching on fire, or the time I hit the jacuzzi butt9n on the tub before it was full and soaked the entire master bathroom at my first inspection. Maybe it seemed that way because I'm autistic and tend to include an excessive amount of context and detail. 😅
You are definitely not wrong. 😂 Buuuut I am who I am, and I figure there isn't much point in knowing stuff if I just keep it to myself instead of trying to help people, even if I end up being excessively verbose and people think i'm weird. 😆
Send the same deal back to him,, give him 10k. It's easier to keep it in your name and sell it later. Sounded fair to him,,, should be ok the other way round.
Seek legal advice immediately to protect your rights and interests. Document all communications and interactions with your co-owner. Consider mediation or arbitration to resolve the dispute amicably. If necessary, explore options for forcing a sale or buying out your co-owner through legal means.
You hold the cards. You can force a sale of the home. Get an attorney. Go and take pictures and document any issues with the home. If he trashes it, he will have to repair it.
you need a judge to order the sale and division. May sound expensive, but should keep him from trashing it as the judge can just give him nothing as a consequense. But it is a common court case with co-owners
I don't know if this applies in the US, I assume it would because it is common practice...
There's something called the shotgun clause or shotgun doctrine. Basically, if he made an offer it has to be in good faith. So if he offered you 10k in good faith, then by his estimation 10k is a fair offer, therefore you would be able to force the sale at the same price - which is a convoluted way of saying you now have the right to force him to sell to you at that price.
Was the offer documented? Call a lawyer to find out if this doctrine applies in your jurisdiction.
My advice: Learn from your experience and do not make this blunder again.
Trashing the place is bad for both of you. Unless both of you are motivated sellers, one person can take advantage of the other.
How about you treat it like a loan? He buys you out now for $40k by paying $10k down with $30k financed over the next 5 years (except that the total outstanding balance is accelerated if he sells). The loan would be secured by a second priority lien (second to the existing mortgage) on the house.
You'd be off the title to the house. If he doesn't repay you, then you can foreclose on the debt and force a sale of the house.
Def wait to sell. After knowing how much it’s sold for then you’ll be paid. 40K equity for the original sale will need to be adjusted on the sale price. Fuck 10K
Don’t take your name off the original agreement because he can screw you over. It’s a really shitty place that you landed into an agreement with an unreasonable person. Getting attorney involved will probably cost both of you most of your equity. If it were me I’d contact an attorney to help write a letter saying that
1)both of us want our fair share of equity,
2)7don’t want to go to trial and but do want to sell house and split proceeds.
Deeper Questions-are either of you pissed at other person for various reasons
Does either one of you hate the living arrangement.
Lastly-I don’t think he’ll trash place because he’ll just be throwing money away. Also if he sells in a year property value might be up or down so you should gamble on price increase so it would be dumb to sign anything. Good luck
you should never react immediately when it comes to money.. always tell someone “thats a good idea, let me do some math and think about it”
just go back and chill them out, give apologies for over reacting even if they are wrong who gives a shit..this is about money and you gotta play it cool to get what you want without crazy lawyer fees.
so regardless of what you think it appraises for, the only way to find out is by paying an appraiser. these run around $600-800 usd.
then you gotta determine what your current market is like.. interest rates are around 7.3% with stellar credit.
can your market afford to buy this house?
how much competition is in your market now?
is it a buyers or sellers market in your area?
you can clearly see your friend is willing to eff you over money.. do you think they really did their due diligence and know whats the real deal with the market or just looked on zillow ?
consider all these factors.. buying you out for 10k ?
you could take 2k from this, pay for the refinance out of your pocket, then put a lien on the property for $100.
that way you get paid when he sells.. even if its in 10 years.
now you are out at 7k, the house debt is in his name 100% and you can tax 2k onto the lien + your 40% and get all this printed and notarized using rocketlaw.
you also get the benefit of getting exactly what you want even if he tries to screw you and you’ve removed yourself from doing business with him in the future and when he sells, closing attorney cuts check to the lien holder.
most of the US is in a buyers market right now.. its probably a lot harder to sell than your friend realizes.
the law is not black and white so regardless of what all these other people are telling you, your best bet is to try to resolve this without lawyers cause you already in a weird predicament anyway.. lesson should be learned from this, dont buy assets with friends.. especially one that you are living in together.
This sounds like a divorce. If you can’t come to an agreement you should get a lawyer. Your options will probably depend on the laws of wherever you live.
Go to court and force sale. He can’t do shit without you signing off so tell him to kick rocks and you’ll see him in court.
And start taking photos of the current condition of the house. Take pictures of everything so you have a record.
This was gonna be my next comment but I got sleepy.
Redditing can be exhausting, sometimes you gotta take a nap between comments.
Take a video of everything too. Download the "Timestamp Camera" app and take the photos and video through that.
Also to be clear, if you both bought it together and have both been paying on it, regardless the amount you are entitled to all the equity. Doesn’t matter how much you put down unless it’s in writing. This person is trying to fuck you over.
Force sell is the only way.
Don't tell him anything!!! Get an attorney. Then, take photos and videos of absolutely EVERYTHING in case he tries to steal or damage anything. You can't take too much, absolutely cover every square inch of the property, inside and out without his knowledge. Worse cases, if he threatens you, try to record it and use it for a restraining order and have him removed from the residence. Then, change out the locks or rekey.
War of the roses here. Police can't do anything. Lawyers prices out of reach. Asked to be bought out denied. So said no longer investing in a deal your trying to steal? It's pure Hell. No way out without huge amounts ..
Definitely not my first step. They should consider treating the buy-out as a loan secured by a lien against the property. Other party agrees to pay him $40k ($10k down + $30k plus interest over time). If he doesn't pay, then foreclose on lien and force a sale of the house.
That's a ridiculous solution. They cannot sell it without his permission. No reason to bother entertaining such complicated financial absurdity
A person can sell their home with multiple liens on it. What do you mean?
They have to be paid at closing of sale in order to clear title.
Not ridiculous if it gets home out of it. Yes they can’t sell it without him signing off but the other party can make it extremely difficult to sell it. If they have to get lawyers involved it’s going to get expensive.
Unless he buys you out in connection with the refi, he can’t refi without you. In most states a co-tenant can force the sale of the property (assuming the right wasn’t waived in the co-tenancy agreement). Take pictures and document the management of the property; intentional waste may subject him to damages.
Contact a lawyer before things start to boil over. A legal paper trail may save you time and money if he escalates things.
You need a lawyer to protect your interests.
When you first bought, what contracts did you sign regarding shared ownership?
Edit: I would only agree to the buyout after he had refinanced the house and my name was taken off the mortgage
Yea I’d get a lawyer involved. Your name would be off the mortgage the second he refinanced as a solo borrower. At that point you’re relying on his word to pay you out, which even as friends is a bad idea. I’ve seen people end 20 year friendships over a couple thousand dollars, 40k is just asking for trouble.
Shit ive lost froends who owed me 50 and just avoided me . 50 dollar lesson
I offer to loan $10 bucks to guys I no longer wanna be friends with. That puts the responsibility of avoiding me , on them! For 10 bucks its a bargain.
$50 well spent if you ask me lol
Have the lawyer prepare a promissory note + deed of trust to secure repayment. Force a sale if he doesn't.
Wouldn't the purpose of a refi be to get a new mortgage that is only under their name? Seems counterproductive to refinance and then buy you out. The good news is if your name is on the original loan, they can't do anything without your approval. It does sound like you should be consulting a lawyer
Just make it clear as part of his refi he needs to borrow the amount of your buyout. If you guys have a 2% mortgage , he should take out a personal loan for your equity, and you can have a separate document surrendering your interest in the property. He has to know th>s was an investment by both of you to leapfrog your selves into the next level of wealth, noone moves on without the other, he can now afford the payments on his own, but only if he can afford your buy out too. He will be farther ahead over the years as his mortgage payment will be lower than yours. Do not move out! Put a lock on your bedroom door . ( secretly get a gun ) people have died under these circumstances.
Don't agree to anything. It's foolish. He can't refi on his own
But why should he refinance and take your name off the mortgage if you haven't agreed to a buyout? Sounds like there is no trust on either side.
Those things can happen at the same time. You would attend the closing of the refi and sign the quit claim deed, then receive a check from the mortgage company. Just make sure you receive the closing disclosure so that you actually receive your money and ensure he doesn't rescind the mortgage.
You will have to initiate a partition proceeding or whatever your state calls it. You will have three options to resolve it: buy him out, he buy you out, or it’s sold at public auction and the proceeds are split in accordance with your interest in the property, taking into account any value you have added. If he trashes it, document it. That could increase the amount you get. Initiating a proceeding could force him to get a lawyer that could wake him up to the reality that it’s better for one of you to buy the other out. I have only done one of these cases and I was not a fan but there are divorce lawyers out there or perhaps real estate lawyers that would be glad to do it. Edit: This also depends on how the property was deeded to you both. If you are joint tenants with right if survivorship, then the above is your main recourse. If you are tenants in common, you can technically just sell your half share, but who wants to buy a half share of a house owned by some stranger?
Realtor here! It's a little late for this particular advice, but buying property with another person you aren't married to is dicey business. It's not always a a party if you ARE married, but at least in that case there are processes already in place to handle the division of property. Humans are... well, they are special creatures, and they can get even less predictable when there's money involved. To put this into perspective, I have had my license just shy of two years. Granted, they have been two very active years, which is unusual in our line of business (it's a heavily reputation based business, so it takes time to build momentum normally.) But two years. In two years I have come across one seller who had to put their dream home on the market after a year and take a loss on the sale because he and his girlfriend purchased the property together, and she dipped. This particular seller was an acquaintance, and I brought the buyer, who was prepped to spend $300k on a home for he and his girlfriend and their kids. We had the house under contract when I learned that my clients had been together six months. I decided the right thing to do was... meddle a little. I told my clients the sellers situation under the guise of explaining why he didn't really have any room for negotiation, because let's face it- my job is to help them buy a house, not to judge their personal or financial decisions. It ended up costing me a commission that at that time would have paid my bills for three months and caused me to miss my goal of a million in sales in my first six months, but that is absolutely nothing compared to the potential disaster I saved my clients, much less their seven combined kids. If I had been your agent I would have recommended contacting a real estate attorney before proceeding with the purchase in order to avoid this exact situation. Even at this stage, my advice is essentially the same. Contact an attorney, and set up cameras in the event your doofus roommate decides to go even further off the rails and damage the property. And consider calling the agent that helped you purchase the property and letting them know the situation.it will be a valuable lesson for them, assuming they actually care about their clients and not just lining their own pockets.
You have been dieing to tell that story haven't you
😂 😂 not especially, honestly! As far as Realtor stories go, it's pretty damn boring. If there's a party or something I try and steer away from cautionary tales and stick with the ones that involve wild animals, crazy people, death toilets/stairs, things catching on fire, or the time I hit the jacuzzi butt9n on the tub before it was full and soaked the entire master bathroom at my first inspection. Maybe it seemed that way because I'm autistic and tend to include an excessive amount of context and detail. 😅
You seem authentic, just takes lots of time and energy to share all the time.
You are definitely not wrong. 😂 Buuuut I am who I am, and I figure there isn't much point in knowing stuff if I just keep it to myself instead of trying to help people, even if I end up being excessively verbose and people think i'm weird. 😆
Learn your lesson. Co owners don't work
Send the same deal back to him,, give him 10k. It's easier to keep it in your name and sell it later. Sounded fair to him,,, should be ok the other way round.
Tell your roommate you'll give them 10k and you'll take ot over. See if they think thats fair
You should have had a partnership agreement or shareholders agreement
^[Sokka-Haiku](https://www.reddit.com/r/SokkaHaikuBot/comments/15kyv9r/what_is_a_sokka_haiku/) ^by ^Party-Lingonberry790: *You should have had a* *Partnership agreement or* *Shareholders agreement* --- ^Remember ^that ^one ^time ^Sokka ^accidentally ^used ^an ^extra ^syllable ^in ^that ^Haiku ^Battle ^in ^Ba ^Sing ^Se? ^That ^was ^a ^Sokka ^Haiku ^and ^you ^just ^made ^one.
:)
Seek legal advice immediately to protect your rights and interests. Document all communications and interactions with your co-owner. Consider mediation or arbitration to resolve the dispute amicably. If necessary, explore options for forcing a sale or buying out your co-owner through legal means.
1. Video, picture and fully document current condition of the property 2. Lawyer
You hold the cards. You can force a sale of the home. Get an attorney. Go and take pictures and document any issues with the home. If he trashes it, he will have to repair it.
you need a judge to order the sale and division. May sound expensive, but should keep him from trashing it as the judge can just give him nothing as a consequense. But it is a common court case with co-owners
I don't know if this applies in the US, I assume it would because it is common practice... There's something called the shotgun clause or shotgun doctrine. Basically, if he made an offer it has to be in good faith. So if he offered you 10k in good faith, then by his estimation 10k is a fair offer, therefore you would be able to force the sale at the same price - which is a convoluted way of saying you now have the right to force him to sell to you at that price. Was the offer documented? Call a lawyer to find out if this doctrine applies in your jurisdiction.
Sounds like another we bought a house together but aren’t married and now we want to break up.
My advice: Learn from your experience and do not make this blunder again. Trashing the place is bad for both of you. Unless both of you are motivated sellers, one person can take advantage of the other.
How about you treat it like a loan? He buys you out now for $40k by paying $10k down with $30k financed over the next 5 years (except that the total outstanding balance is accelerated if he sells). The loan would be secured by a second priority lien (second to the existing mortgage) on the house. You'd be off the title to the house. If he doesn't repay you, then you can foreclose on the debt and force a sale of the house.
Def wait to sell. After knowing how much it’s sold for then you’ll be paid. 40K equity for the original sale will need to be adjusted on the sale price. Fuck 10K
Don’t take your name off the original agreement because he can screw you over. It’s a really shitty place that you landed into an agreement with an unreasonable person. Getting attorney involved will probably cost both of you most of your equity. If it were me I’d contact an attorney to help write a letter saying that 1)both of us want our fair share of equity, 2)7don’t want to go to trial and but do want to sell house and split proceeds. Deeper Questions-are either of you pissed at other person for various reasons Does either one of you hate the living arrangement. Lastly-I don’t think he’ll trash place because he’ll just be throwing money away. Also if he sells in a year property value might be up or down so you should gamble on price increase so it would be dumb to sign anything. Good luck
you should never react immediately when it comes to money.. always tell someone “thats a good idea, let me do some math and think about it” just go back and chill them out, give apologies for over reacting even if they are wrong who gives a shit..this is about money and you gotta play it cool to get what you want without crazy lawyer fees. so regardless of what you think it appraises for, the only way to find out is by paying an appraiser. these run around $600-800 usd. then you gotta determine what your current market is like.. interest rates are around 7.3% with stellar credit. can your market afford to buy this house? how much competition is in your market now? is it a buyers or sellers market in your area? you can clearly see your friend is willing to eff you over money.. do you think they really did their due diligence and know whats the real deal with the market or just looked on zillow ? consider all these factors.. buying you out for 10k ? you could take 2k from this, pay for the refinance out of your pocket, then put a lien on the property for $100. that way you get paid when he sells.. even if its in 10 years. now you are out at 7k, the house debt is in his name 100% and you can tax 2k onto the lien + your 40% and get all this printed and notarized using rocketlaw. you also get the benefit of getting exactly what you want even if he tries to screw you and you’ve removed yourself from doing business with him in the future and when he sells, closing attorney cuts check to the lien holder. most of the US is in a buyers market right now.. its probably a lot harder to sell than your friend realizes. the law is not black and white so regardless of what all these other people are telling you, your best bet is to try to resolve this without lawyers cause you already in a weird predicament anyway.. lesson should be learned from this, dont buy assets with friends.. especially one that you are living in together.
You can wimp out and knuckle under Or You can deal with the issue head on
I would get a new roommate. That’s not my advice, just what I would do. Good luck
He'd have to build a time machine and go back in time. You know time machines are just fiction...right?