My wife purchased a house in Jan 2008 for her old parents. Initially her 2 brothers and 1 sister had agreed to pay towards the mortgage installment. Now one of her brother and sister do not want to pay. One brother is still living in the house and makes about 60% contribution. We have asked him to vacate the house but he is not willing to do that. My wife agrees that she had made a mistake of trusting her brothers. We want to get out of this mess. The loan value of the house is $145K and assessed value is $90K. Please advise what are our options.
Optional Information: State/Country relating to Question: Georgia Already Tried: We have tried to talk to my wife's parents who are living in this property as well as the younger brother (still living on the proprty). We involved my wife's cousin brother also for discussions. The younger brother does not want to vacate the property.
Thank you for your question and for using JA. Please click accept so I will receive credit from JA for my time.What parties are on the deed and what parties are on the loan?
My deed is in my wife's name and the loan is also in my wife's name.
The deed is in my wife's name and the loan is also in my wife's name.
Since she is the only one on the deed, she can evict any party that lives in the house. Since he has been paying the majority of the loan, then I am sure that he is going to use as a defense that he has an equitable interest in the house. There does not appear to be a good resolution to her situation. Probably her only option to get out of it is to quit paying and let it go into foreclosure. Sorry but sometimes there are no easy solutions.
We are also thinking that foreclosure is the only option. My wife is prepared for that. We do not have much info or experience with this. Currently me, my wife and my kids are living in a house that has been paid off by me. The title of this house is in my name and my wife's name. If my wife chooses the option of foreclosure, will it have any affect our current residential house. I understand that my wife's credit will get a hit, for which we are prepared and OK.
If we go for foreclosure, what should be my wife's next step?
Thanks for the help.
Of course I cannot tell you what to do. She will be the black sheep of the family. Probably most people would change your house entirely into your name, quit paying the mortgage on the other house, list it for sale with a realtor and then see what happens.
Thanks for the help and patience yesterday. I talked to my wife also and need few clarifications.
Q1: If my wife goes for the foreclosure, how will it affect me as a husband?
Q2: If I am applying for a loan in future in my name. if my wife's name comes up, will it affect my situation? Please provide some examples.
Q3: How long this will remain in my wife's credit history? I have heard that foreclosure will affect credit for 7yrs.
Those are all new questions. The honor code is that you accept with the current expert and continue or post your new questions in another thread. Thanks.
This is the last set of clarifications I need. Thanks
It won't
It should not come up if she is not on the application. Georgia is not a community property state.
That is correct. It will stay on her credit for 7 years unless they obtain a deficiency judgment. That is usually ten years from the date of the entry of the judgment but it can be extended.
Experience: Actively practicing trial attorney
Thanks a lot for your help and patience.
You are most welcome and good luck. No good deed goes unpunished.