Ask a Real Estate Pro

Gary Singer advises a reader about issues that occur with joint ownership of a rental home.

Q: Ten years ago, I bought a rental home with my son, but I was the only one who signed the loan papers. We are both on the deed. My son has been handling the day-to-day issues and paying the mortgage, but lately the mortgage payments have been late. I would like to sell the property, but my son is not cooperating and, to make things worse, we owe more than the property is worth. What are my options? — Jim

A: Your best bet is to persuade your son to cooperate in a short sale. Because you are the only person on the loan paperwork, you are the one on the hook for the mortgage

payments, regardless of the deal you made with your son.

However, because your son is on the deed, he owns half the property and has as much say in what happens as you do, so you will need your son’s approval to complete a short sale. This is not a good position for you.

I advise clients who own real estate never to co-sign a mortgage for a home they don’t at least co-own and never have a co-owner who also is not on the hook to the lender. Both scenarios create situations in which you owe money on a property that you can’t control without the permission of someone who has nothing to lose by not making payments.

In a short sale, you will need the lender to agree to sell for less than you owe on the mortgage. That’s certainly doable, but it is more complicated than a traditional sale. If your son doesn’t cooperate, you will be left to decide between the status quo and suing your son to have the court force him to work with you. It’s time to sit your son down for a heart-to-heart talk.

Board-certified real estate lawyer Gary M. Singer writes about the housing market at SunSentinel.com/ business/realestate each Friday. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/ askpro.