This is for my friend – not me. But I don’t even know where to begin to help her find answers. She was in a long-term relationship with another woman. They had been "married" four years ago. She moved into the woman’s house. They refinanced and put the house totally in my friend’s name. Now, 4 years later, out of the blue, the girlfriend dumps her and kicks her out of the house.
The girlfriend is living in the house, NOT paying the house payment, my friend is getting legal foreclosure notices. She cannot pay for the house by herself and has no credit to refinance or anything. It is my belief that they owe more on the house than it’s worth. They tried to sell the house a year ago and failed. The house is currently on the market, but it probably won’t sell – or it won’t sell for the money they owe.
The girlfriend is living there with her adult daughter. They are not paying anything that we know of. All the utilities are also in my friend’s name. The two cars they both drive are in my friend’s name (cars for my friend and her girlfriend – my friend is going to keep her car and the girlfriend wants to keep the one she is driving). They also have loans and credit cards together.
Their marriage was (of course) not a legal one (we are in Kentucky) and they had no legal papers that dealt with any kind of breakup. I say my friend needs to talk to a real estate lawyer at the very least.
Has anyone ever been in a situation like this or do you have any suggestions on where to turn for advice?
What I think:
1. I think my friend needs to draw up a document on the house that says if the house sells for more than they owe, they split the extra 50/50 (this will never happen in today’s housing market). If the house sells for less or is taken by the bank, they need to split the amount owed 50/50 and pay it off.
2. The girlfriend needs to figure a way to (A) pay off the car loan for the car she wants to keep or (B) get the car loan in her name only.
3. My friend needs to make the girlfriend sign a piece of paper about the utilites stating that she will pay them until she leaves the property. This way, if she fails to pay them, I am thinking that my friend could take her to small claims court.
More info (sorry so long): My friend has filed bankruptcy in the last 10 years, so that is not an option. She also makes very little money and has a child to support by herself (receives no child support or other help). The girlfriend makes more money and has more education than my friend. The girlfriend also has not been friendly during the breakup. She has stiffed me on a business arrangement before and I have no doubt she would lie, cheat and steal to protect herself and get out of paying money.
So, that’s the background. What would you do?
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