If my co-owner wants out of the the house that we purchased together, if there is negative equity can I collect that amount from her?
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If my co-owner wants out of the the house that we purchased together, if there is negative equity can I collect that amount from her?
I am unmarried; my girlfriend and I purchased a house together. The house is now underwater; we owe $380K; now it is worth $220K. We have since separated and she wants no part of the house. I understand that the only way to remove her name from the mortgage is to get it refinanced, which at this time is not an option due to the value. I would like to keep the house and continue to make payments. Am I able to collect/sue her for half of the negative equity in the house, which is $80K?
Asked on September 30, 2011 under Real Estate Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The short answer to your question is that if your former girlfriend and you purchased a home together and its liabilities exeed what it is worth and she wants nothing to do with it (where she presumably will not pay any part of its debt load, insurance, property taxes and the like) she would be obligated to you for her ownership share of this asset that you pay on her behalf during her ownership of it.
She would not be obligated to you for any negative equity in the home. Her obligation for this would lie with the lender on the home possibly. This possibile obligation would be detrmined if the loan that is being paid on the home was purchase money or not and if so, does your state have anti-deficiency legislation regarding purchase money loans.
Good question.
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