Convoluted situation- I'm hoping someone can give direction

Creative Real Estate Financing
7yFollow

Convoluted situation- I'm hoping someone can give direction

Colin O'Neill
Lowell, MA · Member since 2015 · 29 posts · 14 votes

Hey Biggerpockets,

I'm hoping someone can give me guidance. Complicated situation, here goes...

My wife and I bought a duplex with my in-laws 21 years ago. MIL passed after battling cancer in 2005. FIL got remarried in 2009, died after only 8 months of marriage. No will. Bitter woman. After probate, she now owns 1/4, my wife and I own 3/4. She will not move. She claims poor-mouth and only pays half of the 1st mortgage every month. We had to move into a bigger place to accommodate my aging mother, so now dealing with a big mortgage on the new house, 1/2 of small mortgage plus interest-only HELOC. Her side of duplex needs new A/C condenser. Side we are renting out needs new furnace and WH any minute. No reserves, no wiggle room. House has around $170k in equity. Any thoughts on maybe seeking a private buyer? Is there any way of selling only our 3/4 share? Any thoughts would be appreciated.

Thanks!

Colin

0Reply
13 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Mike McCarthy:

@Colin O'Neill I've never heard of owning 1/4 a house. 1/4 an estate, of course. Is it an LLC? Or how is the deed worded?

I’d imagine you’d need to buy her out. I’m not sure you can sell a part of a house. ???

its called "tenants in Common"  

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
2Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    @Colin O'Neill I've never heard of owning 1/4 a house. 1/4 an estate, of course. Is it an LLC? Or how is the deed worded?

    I’d imagine you’d need to buy her out. I’m not sure you can sell a part of a house. ???

    0Reply
  • John Corey
    London · Member since 2019 · 722 posts · 386 votes
    7y

    Speak with a lawyer. How you are holding title can matter. Tenants in common, etc. 

    A court can force a sale. A bit unlikely given her age, primary residence, etc

    A note to all, you need your JV (joint venture) agreements to be clear about death and other reasons the JV will come to an end. Way easier to nail it down at the start than to clean it up after something negative happens. Call it a ore-nup for a JV.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Mike McCarthy:

    @Colin O'Neill I've never heard of owning 1/4 a house. 1/4 an estate, of course. Is it an LLC? Or how is the deed worded?

    I’d imagine you’d need to buy her out. I’m not sure you can sell a part of a house. ???

    its called "tenants in Common"  

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    @Colin O'Neill You need to talk with an attorney. 

    Most likely, you'll want a "petition to partition".  If the court grants it, you'll sell the property and divide the proceeds.

    0Reply
  • Michael Lewis Lee
    Wholesaler · Dallas, TX · Member since 2017 · 306 posts · 133 votes
    7y

    Hello Colin!  It is determined by all parties on the Deed or some other legal form executed by that places ownership with that property involved.  Not the mortgage.  

    Good luck to y'all!

    0Reply
  • Colin O'Neill
    OP
    Lowell, MA · Member since 2015 · 29 posts · 14 votes
    7y

    Thanks all for the replies. @Charlie MacPherson we are in MA also. The one lawyer we spoke to painted a bleak picture with petition to partition. He and other sources I've researched make it sound like it ends in a courthouse steps auction and we can kiss any equity goodbye. Do you have any experience with petition to partition?

    Thanks!

    Colin

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    7y

    @Colin O'Neill

    Very complicated situation. Would be much worse if she refused to pay any of the mortgage. Interestingly, she’s paying half the mortgage and only owns 25% interest in the property. Can’t you rent out the other unit for enough to cover your share of the payments? Or is the problem that you need to get your equity out?

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free