Two party mortgage loan is in defalt because one party refuses to pay. What course of action can the other party take?

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Two party mortgage loan is in defalt because one party refuses to pay. What course of action can the other party take?

My sister and her partner are both on the mortgage loan. Her partner has moved out of the home and has not lived there for several months. She also is not helping to make the monthly mortgage payment. My sister cannot afford this payment on her own. She is now getting letters from the bank regarding possible foreclosure. Is there something she can do? She is willing to put the house on the market but her partner refuses to even discuss this option and has stated she will sign nothing. I would think there has to be something my sister can do?

Asked on September 16, 2019 under Real Estate Law, Nebraska

Answers:

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

Answered 2 years ago | Contributor

Actually, the house can be sold over your sister's partner's objection. When joint owners cannot agree as to ownership matters, the law provides the remedy of "partition". With such an action, a court will order that the property be divided if possible. If not, such as in the case of a house, then it will order a "sale in lieu of partition". Accordingly, the property will be put on the market and sold for fair market value. The proceeds will then be distributed equitably. First, however, before being offered to any 3rd parties, any owner who wants to buy out the other owner(s) can do so (again for fair market value).

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

Answered 2 years ago | Contributor

Actually, the house can be sold over your sister's partner's objection. When joint owners cannot agree as to ownership matters, the law provides the remedy of "partition". With such an action, a court will order that the property be divided if possible. If not, such as in the case of a house, then it will order a "sale in lieu of partition". Accordingly, the property will be put on the market and sold for fair market value. The proceeds will then be distributed equitably. First, however, before being offered to any 3rd parties, any owner who wants to buy out the other owner(s) can do so (again for fair market value).


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