What can I do to make my so-owner refinance?

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What can I do to make my so-owner refinance?

About 6 years ago, my niece asked me to co-sign a loan to purchase a house. I explained to her that she had to assume the whole debt 1 year after purchase. After numerous phone calls I have made to her, she has made no effort to sign the renewals to assume the total debt which includes my debt of the mortgage in my name. The $300,000 mortgage debt stops me from obtaining any loan that I could get from a normal bank. For the past 6 years, I had to go to a private lending company as I ran into financial difficulty. I feel so foolish as the interest along payments and borrowing fees total over approximately $130,000 to me personally to date. The property value has increased to over 1.2 million. Can I somehow recover this debt that I incurred because of her avoiding to take over this mortgage. Now, again, this mortgage is coming up for renewal next month and I do not want to renew.

Asked on April 5, 2019 under Real Estate Law, Alaska

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

The fact is that you cannot make your neice refinance. However, you can force a sale of the propeety if you want. The law provides a remedy when co-owners cannot agree as to ownership matters. It is called "partition". In such an action, the court will order that the property be divided, if practicale. If not (such as in the case of a single family house), it will instead order a "sale in lieu of partition". This means that the property will be put on the market for fair market value and when an offer is accepted and the sale completed, the proceeds will be distributed equitably to all of the owners. First, however, the party who wants to keep the property will be given the chance to buy out any other owner who wants to sell.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

The fact is that you cannot make your neice refinance. However, you can force a sale of the propeety if you want. The law provides a remedy when co-owners cannot agree as to ownership matters. It is called "partition". In such an action, the court will order that the property be divided, if practicale. If not (such as in the case of a single family house), it will instead order a "sale in lieu of partition". This means that the property will be put on the market for fair market value and when an offer is accepted and the sale completed, the proceeds will be distributed equitably to all of the owners. First, however, the party who wants to keep the property will be given the chance to buy out any other owner who wants to sell.


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