Help! I Am A Homeowner In MD And I Am Being Sued By My Father!
Family and Business.
I went into buying a property with my father in 2004. He found the HUD properies. He supplied the downpayment and closing cost. We have no legal agreement. He is managing the three properties. I supllied the credit and had employement (he didnt) The mortgage and the title/deed is in my name alone. The plan was to buy three houses, wait 6 mos, refinance, buy three more. the 1st three he would recieve the profit from. the next three I would. It has been 3 years and I recieved all of $1,000. Now I want to refinance because my credit wouldnt allow me to before this time (and I quit my job in Feb 05 but was rehired Nov 05 till now). He is now suing me for Constructive and Resulting trust. I drove from NYC to let the tennants know that an appraiser is coming and he has told them not to let me or anyone connected with me in.
What do I do?
Can I take the houses from him?
Does he have a legal standing?
What are his rights?
What if he stops paying the bank?
How do I get the teennants to pay me?
What is he entitled to?
He doesnt have my interest in mind so how can I protect myself?
I NEED to refinance now because of huge debts and need the cash last month.
Please help
[ Edited by JustJ on Date 10/07/2007 ]
I barely have gas money to travel from NYC to Baltimore let alone money to pay a lawyer a retainer of $1500. I cant refinance. I cant get rent. Am I going to become a casualty of this because of funding?
BTW, I have been back at work at the same job since Nov 2005.
Any way I can get the appraiser in legally? Sheriffs office?
Quote:
On 2007-10-07 12:21, JustJ wrote:
I barely have gas money to travel from NYC to Baltimore let alone money to pay a lawyer a retainer of $1500. I cant refinance. I cant get rent. Am I going to become a casualty of this because of funding?
BTW, I have been back at work at the same job since Nov 2005.
Any way I can get the appraiser in legally? Sheriffs office?
You need to do whatever you can to HIRE a lawyer. The money you save by NOT doing it or delaying will be more then made up by what you will lose by not doing anything if you cannot work it out with your father in law immediately. Get a lawyer.
Have you taken the time to run the numbers to se if there is any equity to cash out? Pops paid closing cost & down payment. You are the legal owner, but paid $0 out of pocket unless you paid the rehab costs. Your benefit from the deal appears to be the tax deducttions which could be significant. Before pushing too hard, I would calculate the equity & subtract out closing costs to see if there is any cash in the buildings. You can ALWAYS get another house, Dads come once in a lifetime.
God Bless
Quote:On 2007-10-07 18:56, ceinvests wrote:
You own the houses. You own the mortgages.
Actually, the lender "owns" the mortgages.
JustJ,
From your post, I can not tell who would be responsible for the additional loan payments as a result of this refinance. Due to your current situation, your father might have doubts that you will be able to meet the payments and end up having the property foreclosed on.
As some of the above posters alluded, residential SFH rentals are not well know for positive cashflows. Doing a cashout refinance or any other refinance will most likely increase payments and throw off whatever numbers you have right now.
In your post, when you mentioned profits, was the original plan to flip the properties for profits? Rent them out for profit?
As others have mentioned, you have only one father. It would make sense to sit down and work this out rather than both of you fight over this..Try to understand his objections to the refinance. Why did you not buy the other 3 properties that were supposed to be for you? Would it make sense to sell one property, pay you off and let your Dad hold on to the other 2? Obviously, he has more into these properties than you do.
Keep in mind, that the real estate market is down in almost all parts of the country so you may or may not make a profit if you decide to sell right now.
Good Luck.
JS.
has the process server come-a knocking yet?