Posted on: 08th Sep, 2008 10:02 am
I was involved in a partnership - no agreement - on a property and we both signed loan docs on a property. I was "taken out" by another indivdual and have a short one-page doc that says I will be removed from the loan in 6 months. The market dropped and the other individuals could not re-fi. There is a tenant paying rent and the other individual is covering the short fall in cash flow. The other individual recently told me they could not make the payment any longer. What are my choices. I am off the title and on the note. They are willing to work with me.....should I get back on title (individually or collectively), should I sue (do I have a case?). Otherwise, it seems if I want to preserve my credit, I have to start making the payments. Please help ;-)
As you know, although you are on the note for just 6 months you are still liable until the note is refi'd in the others names.
Your first question "What are your options"? Pay or Sue
You have a case because there is a binding contract but you are still liable for the note.(sucks) In a small claims court you maybe able to get the money for the remaining part of the 6 months (NP) was suppose to pay. They cannot refi its kinda hard to get water from a rock, you atill stuck on the note. **consult your attroney**
If i'm understanding the senerio correctly: The original partner(op) is still paying the part. The New partner(np) can no longer make payments.
** Either way get Back on the Title.**
1. If all 3 is on the note and title can it will make it less money for all 3, BUT can you trust (NP) to continue to pay their share.
2. Drop (NP) and work only with (OP) until the market gets better.
3. If your tenant is solid, Do it byyourself and cover the shortfall in cash flow until the market change.
** if it were me it would be option 3**
Your first question "What are your options"? Pay or Sue
You have a case because there is a binding contract but you are still liable for the note.(sucks) In a small claims court you maybe able to get the money for the remaining part of the 6 months (NP) was suppose to pay. They cannot refi its kinda hard to get water from a rock, you atill stuck on the note. **consult your attroney**
If i'm understanding the senerio correctly: The original partner(op) is still paying the part. The New partner(np) can no longer make payments.
** Either way get Back on the Title.**
1. If all 3 is on the note and title can it will make it less money for all 3, BUT can you trust (NP) to continue to pay their share.
2. Drop (NP) and work only with (OP) until the market gets better.
3. If your tenant is solid, Do it byyourself and cover the shortfall in cash flow until the market change.
** if it were me it would be option 3**
You have a contact that says the other partners are liable for the loan after six months. You are off the title, but on the note. So you are liable for the loan, but don't own the property. Never do this again.
You have three options in order of preference:
1. Sell the property.
2. Get back on title and pay the note. Wait until the property value returns.
3. Don't make any payments and wait until the noteholder sues you. Then counter sue the ex-partners for indemnity.
You have three options in order of preference:
1. Sell the property.
2. Get back on title and pay the note. Wait until the property value returns.
3. Don't make any payments and wait until the noteholder sues you. Then counter sue the ex-partners for indemnity.
