Owning a property is considered by most to be an asset, but joint-ownership can quickly turn into a burden. Not only are parties at risk in the event of a divorce or separation, but one person’s debt can quickly impact both owners.
— Since houses are considered an asset, parties that purchase a home jointly both have an interest in putting their name on the title. Not only will this ensure that both have a right to the property, it can also make it easier to probate the home if one owner passes. However, having multiple names on a title comes with risk.
In order to sell or rent the property, all parties on the title must agree. If one party says “no,” then both joint owners are trapped on the title until a court orders that the property be either transferred to one party or sold. Even after the court order, the sale could take time – preventing the trapped property owners from moving on.
According to attorney Amy Hoch Hogenson, “To remove [a name] from the mortgage, it will be necessary to refinance the mortgage loan or, alternatively, for the member of the couple who is taking ownership to assume sole responsibility for the loan.”
Usually, this is very difficult, forcing a quick sale of the home. Since it can be difficult to get a good price when under pressure to sale fast, this puts many joint homeowners in a predicament.
One of the greatest risks to joint-owners is liens brought against the home for the other person’s debt. If the title is for joint tenancy, the lien holder can take the entire property, even if just one person owes money. If the title is for tenancy in common, the lien holder can only put a lien against the portion of the property owned by the person in debt. However, this still prevents a sale of the property.
When homeowners find themselves facing joint ownership issues, it can be best to get out from under the property as quickly as possible. In most cases, this means a quick sale.
According to Shawn Leamon, a certified divorce financial analyst, “The cleanest way to divide [a] home’s equity is to sell the house.”
A quick sale can be difficult in any market. It’s normal for homes to need repairs and upgrades to sell quickly, but these are usually out of reach for homeowners that are facing a divorce or financial problems. In these cases, a cash home buyer may be the best option, as they can offer a fast sale that doesn’t require financing.
Joint ownership of a home can have its benefits, but sometimes the risks can outweigh the rewards.
For more information about escaping joint ownership of a home, contact us at (281) 212-3040 or visit http://www.sellmyhousecash.today/ for more information.
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