Title vs Mtg Question
I'd appreciate all input! I'm selling my home and intend to buy a repo, live in it, fix it up, try to resell after a year for profit. However, my ex-boyfriend holds a mortgage on my current home, but the total amount of mtg is only 35% of selling price. The title is in my name ONLY. He doesn't want me to sell the house and will try to block the sale. Can the closing atty simply cut him a check IN FULL and consider that satisfaction of mortgage? Do we have to have the original promissory note? The mtg is only a 2 page basic document. Any ideas??? Thanks! I'm in Louisiana, btw.
So let me get this straight, your boyfriend has a mortgage on a property that you own. A real estate attorney can cut a check to him in full, but the questions is, will he use it to pay off the mortgage? My guess is probably not. How did you get yourself in this situation?
Does your boyfriend want the house?
Why do you want to sell the house?
Have you considered keeping it as a rental property?
Let us know the details, what exactly you want accomplished and why. Then maybe we can come up with a couple solutions.
Tanya
Thanks, Tanya. He fronted me 30k cash for the house. Selling for 80k. He is simply trying to be difficult, I think. Most would jump at the chance to recoup the cash that quickly. No way do I want to keep this as rental property. And in no way do I want to remain encumbered to him. Does that info help?
You will definitely need an attorney. You can have the attorney draft up papers stating that you are paying the $30K he loaned you and that he received the $30K. Both of you should sign the agreement and both keep a copy of it.
Did he take a $30K loan out on the property to give you the upfront cash? Or did you sign a promissory note stating that you would pay him back? I'm not quite sure I understand the situation.
If your boyfriend wants the house so bad, then why not sell it to him? Create a note for the remainder of the purchase price so that he owes you. If you need cash, then why not get a HELOC (Home Equity Line of Credit) or a second mortgage? The closing agent/atty probably will not cut your boyfriend a check to satisfy the mortgage. The closing agent/atty will pay the lender what is owed and you the remainder of what is owed to you after all expenses are paid, but your boyfriend may have to be there to sign off on it.
Tanya[ Edited by tanya1215 on Date 04/13/2003 ]
Thanks again. He took 30k out of his account...he did not get a loan for the 30k. My father, who lives a few hundred miles away, is terminally ill...I WANT to sell and move closer to family. Ex and I had a mtg drawn up...a promissory note which states the usual...if I sell, his payment comes off the top. He financially supported me; thus, he believes he's entitled to either the house or all of the monies received from the sale of the house. To me, that's a civil matter and has nil to do w/ the house. I have an atty, but he's not a real estate atty, per se. He's given me conflicting info concerning whether or not satisfaction of mtg can be completed upon closing w/o the ORIGINAL note, w/o the ex there signing off, etc. If this doesn't clarify, please let me know.
Get in contact with an attorney to draft up the necessary forms to show you paid your boyfriend the $30K he loaned you. Also you will need to find a title company or real estate attorney to ask the closing agent how the closing process will work and explain your situation to them. Each state is different, so you have to ask the closing agent. Being that your name is on the title/deed, then you will get the proceeds from the sale. Maybe you can write up an agreement with your boyfriend in which you split the profits from the sale. Whatever you decide upon, either a equal 50/50 split or 70/30 split. It all depends on who was paying the mortgage? Did you make any contributions to the payment of the property? Decide what is a fair split if both of your contributed.
Tanya