Fi­nanc­ing, own­er­ship of prop­erty do not have to be iden­ti­cal

Sun Sentinel Broward Edition - Homespot - Broward East - - CAMPBELL&ROSEMURGY - By Ilyce Glink and Sa­muel J. Tamkin

Tribune Con­tent Agency Q: DoIhaveany

rights to a prop­erty if I put down the $50,000 pay­ment when it was first built, then lived in the prop­erty solely since 2006? The prop­erty was fi­nanced in some­one else’s name since my credit was bad at the time. A:

The fi­nanc­ing and own­er­ship of a prop­erty don’t have to be iden­ti­cal. There can be sev­eral own­ers of a home with only one per­son re­spon­si­ble for re­pay­ing the loan.

For ex­am­ple, four friends can buy a prop­erty, and all four of them can be own­ers of the prop­erty. But the loan might have been taken out by only one of the friends. That one friend will then be the one legally re­spon­si­ble for the re­pay­ment of the loan.

You’ll need to know whether you are on the ti­tle to the prop­erty or not. If you are on ti­tle, then the an­swer to your ques­tion is that you are an owner of the prop­erty even though the loan is in some­one else’s name. But even here, you should know that the per­son that helped you out also may own the prop­erty with you. If you no longer want them to own the prop­erty with you, you may want to ap­proach them and re­quest that they deed their in­ter­est in the prop­erty to you. At the same time, you can re­fi­nance the prop­erty and re­lieve your friend from any loan on the prop­erty.

On the other hand, if you aren’t on ti­tle to the prop­erty at all, you then would have to reach out to your friend and have them con­vey their in­ter­est in the prop­erty to you now. Again, you’ll prob­a­bly need to re­fi­nance your loan to have it put in your name and not your friend’s name.

When we get a let­ter like yours, we also view it from the per­spec­tive that you may have had a fall­ing out with the per­son that helped you get fi­nanc­ing on the home. This would be a big prob­lem. While you may have put down the money and made all the pay­ments over the years, if your name isn’t on ti­tle, the home is legally owned by the other per­son.

Your best bet is to work with the per­son that helped you out to have them trans­fer the ti­tle to you. If they refuse, you’ll have an up­hill bat­tle to fight. The big­gest rea­son for go­ing up­hill is that you’d have to go to court to get a judg­ment that the home is ac­tu­ally yours. And go­ing to court is al­ways ex­pen­sive. We’d hope you can avoid that route and come to a res­o­lu­tion by other means.

Your ar­gu­ment in court would be to prove that the prop­erty was pur­chased by this other per­son us­ing your money to as­sist you and not to be­come the sole owner of the prop­erty. You’d also have to show that you’ve made all the pay­ments on the home since it was pur­chased, in­clud­ing re­pair bills, real es­tate taxes, in­sur­ance bills and all main­te­nance ex­penses. You’d prob­a­bly also have to show that the other per­son has not been at the home, used the home or has ben­e­fited from the home since the pur­chase.

Above all, you’ll need a good lit­i­ga­tion at­tor­ney to help you nav­i­gate through the whole le­gal process.

If you’re still friendly with the other per­son, try to work out any prob­lems you have with them and have them sign over any in­ter­est they have in your home to you. Of course, what we’re re­ally hop­ing is that your credit has im­proved sub­stan­tially and that when ap­ply for the loan it will be ap­proved.

Good luck.

Ilyce Glink is the cre­ator of an 18-part we­bi­nar and ebook se­ries called “The In­ten­tional In­vestor: How to be wildly suc­cess­ful in real es­tate,” as well as the au­thor of many books on real es­tate. She also of­fers in­for­ma­tion on her YouTube chan­nel. (youtube.com/user/Ex­pertRealEs­tateTips).

Con­tact Ilyce and Sam through her web­site, ThinkGlink.com.

© 2016 Ilyce R. Glink and Sa­muel J. Tamkin. Dis­trib­uted by Tribune Con­tent Agency, LLC.

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