Net worth question

[disneysteve]

Except the mortgagor is going to be paid in full, while OP and partner split what is left. Irrespective of the name on the mortgage, the mortgagor is not going to release interest in the property without being paid in full.

True, but legally, isn't the partner entitled to 50% of the sale price? How much the OP owes isn't his problem if he has a deed that says half of the house is his.

[RickTayz]

Would that not be an inflation of his personal net worth tracking since the house is barely paid off and he is accounting for it as if his share is all paid off?

[disneysteve]

Would that not be an inflation of his personal net worth tracking since the house is barely paid off and he is accounting for it as if his share is all paid off?

Net worth = Assets - Liabilities

He owns 50% of a house that is worth 300K. That means his share is 150K.
He owes $0.

So 150K in assets - 0 in liabilities = net worth of 150K.

If you sell that house tomorrow for 300K, you need to pay him 150K (minus closing costs and such).

When you agreed to that deal, you put yourself in a really horrible situation.

[TexasHusker]

If you need any more partners let me know.

[Singuy]

Legally, what DS has figured is correct. If you sell the house, you are entitled to give your partner 50% of the proceeds. I am not 100% sure if you need to do that if you let the house foreclose.

[rennigade]

If you need any more partners let me know.

Dang...now I gotta split my profits with someone else.

[Petunia 100]

True, but legally, isn't the partner entitled to 50% of the sale price? How much the OP owes isn't his problem if he has a deed that says half of the house is his.

Joint title isn't the same as owning half the house.

If the lender were not in first position, they would not have lent money on a first mortgage.

[Petunia 100]

So OP, is this a business partner or a partner in life?

[TexasHusker]

So OP, is this a business partner or a partner in life?

Oh gosh maybe I should have asked that before volunteering.

[disneysteve]

Joint title isn't the same as owning half the house.

Then I'm confused. What does joint tenancy mean? What rights does it grant each owner?

This whole thread clearly illustrates why you should never purchase property with anyone but your spouse.

[Petunia 100]

Then I'm confused. What does joint tenancy mean? What rights does it grant each owner?

This whole thread clearly illustrates why you should never purchase property with anyone but your spouse.

I'm wondering what OP specifically means, too. I re-read and s/he states that each own 50%, which is what you said.

SB and I were considering buying a place together about 5 years ago. We were told by more than one lender that if both names are on the deed, then both names go on the mortgage. Perhaps it wasn't always this way and it led to problems during foreclosure, so the rules were changed?

Perhaps OP will shed some light?