One of two owners want to sell

Q: I am a co-owner of a condo purchased in 2006. I am interested in moving back to Southern California and my roommate says no to selling and moving. How do I go about getting my name off of the property and moving on? We currently owe about $60,000 more than the unit is appraised at and I want to know if the mortgage company would approve of me turning the ownership over to my roommate (without) paying heavy fees. Thanks. -- Gary T., Las Vegas

A: This is a rather complicated situation, but a very good question.

You say you want to sell the condominium you purchased with your roommate so you can move back to California. I understand that you'd like to transfer ownership of the property to your roommate and co-owner at the lowest possible cost. I suspect that you'd also like to do this with the least amount of hassle.

But it may not be that simple.

Since you also suggest your name is on the promissory note you signed when buying the property, you could be jointly responsible for repaying the note you signed together.

In that case, both parties are still liable on the promissory note, which is the negotiable instrument secured by the deed of trust encumbering the property.

You should consult an attorney to determine your liability on the note and the process involved in getting yourself off of the title to the property and the promissory note.

Compounding matters, being upside down in the property could pose a problem in trying to secure a new mortgage. Consult a lender or mortgage broker to inquire whether your property is eligible for a government refinancing program.

If you can't work this out and find a way to refinance the mortgage in your roommate's name, your property could ultimately face foreclosure if your roommate can't afford to pay the mortgage.

Extricating yourself from this kind of situation is much like getting a divorce. In fact, as in a divorce, you should consult a qualified attorney with expertise in such cases.

In any case, this is precisely the reason why I generally tell clients that it is best not to purchase property jointly with someone who is not your spouse or a close family member. Too many complications can arise, as you have discovered.

I'm not sure if this is the answer you wanted to hear, but I least hope this information is helpful.

Sue Naumann is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for nearly 30 years. GLVAR has nearly 13,500 members. To ask her a question, e-mail her at ask@glvar.org. For more information, visit lasvegasrealtor.com.