Dear Michael: I purchased a home with my two cousins about three years ago. They were both listed on the title but not the mortgage note. At the time, it seemed like the right thing to do. I am now stuck with the mortgage payment because they both lost their jobs and are unable to pay. Are they also responsible for the loan or am I the only one caught up in this mess?
Answer: You are the only one caught up in this mess. Being on the title does not obligate anyone to be responsible for paying the loan. Your cousins needed to be on the loan in order to be responsible for the note. If they had bad credit or not enough money to purchase the property, they should not have purchased it.
What you need to do is to remove them from the title by executing a quitclaim deed and finding a way to make your mortgage payments. You may consider a loan modification, getting a roommate, selling the house at a loss or doing a short sale. If the bank forecloses on your home, it will affect your credit for the next seven to 10 years. Engaging business with friends or relatives can be risky: If all goes well, you reap the benefits of success and pride, but if it doesn’t, it can be a costly mistake with an emotional price to pay.
Dear Michael: I am looking at homes to buy. How can I find out the history of ownership, including what the seller owes and what he/she paid?
Answer: If you are working with a Realtor, he/she can get you this information. Realtors belong to different associations and have the resources to access information that you may not be able to find on your own. You can also ask your title representative for a property profile, which will list all history of the property on record. If a property dates back to the early 1900s, some of the information may not have been kept and will not appear on any report.
Dear Michael: If I make an offer on a house and the seller comes back with a counteroffer that I agree to, can the seller still change his mind and sell to someone else?
Answer: A seller is free to withdraw the counteroffer any time prior to your acceptance. The communication method for acceptance is described in the purchase contract. If your acceptance was communicated in the method described by the contract prior to the seller’s withdrawal, the seller should honor the contract and not entertain any other offers.
But people don’t always do what they should. It becomes a problem if you decide to try to enforce your contract or not, which would require legal advice and expenses. For that, you will have to consult an attorney. Although you could probably technically enforce the contract, you have to reach a decision on whether it makes sense to expend the time, effort and money to do so.
Michael Kayem is a Realtor with Re/max Marquee Partners, serving Culver City and the Westside since 2001. Contact Michael at (310) 390-3337 or homes@agentmichael.com.
