“I fully own a home, and have sold half of it to another party, holding the title as tenants in common with that party. The purchaser bought the interest for 150K, secured by a deed of trust and promissory note. I am therefore the lender, and a tenant in common on the property. The purchaser has not made timely payments, and I am considering foreclosure proceedings. Can I foreclose on myself, since I am a tenant in common, or only on the purchaser’s interest of the property?ï¿½ If I foreclose, is it possible that another party can become a tenant in common with me, if they win the auction. I do not want to share the property with anyone else at this point, but do not want to “overpay” for the borrower’s interest, the majority of which will come back to me as the lender.
What are my options to remove the person from the deed, and make the person pay the defaulted payments?ï¿½ The person does not want to quitclaim the deed to me. Please advise.”
You will need to seek legal advice on what is called a “partition action.” This is the legal process by which co-tenancies are terminated, when the parties can’t agree to do it themselves.
Depending on the financial details of your situation, you may be able to buy out your co-tenant (using the note as part of your payment) or you may wish to sell the property to a third party and take the cash.
You could attempt to foreclose on a part interest in a property; you should discuss this with a company that specializes in foreclosures. Depending on your state laws, this may be a viable option, too.