[grt8day]

Having family & financial situations mixed is difficult.
My sibling invested with us in the house we currently live. It was purchased as a flip--- 2 years ago. The plan was to live in it for only 2 years (since that was the time restricted by the city--it's under a special program). We used our 1st time buyer to purchase it and we got the loan. Almost a year ago when hubby just got out of the hospital my sibling told me he could no longer pay his part of the mortgage. This was a increase from 1800 to 2975 for us. Mind you dh was still on disability from work. My sibling was just matter-of-fact about not being able to continue his portion. Shortly after this, I found out about a shady business deal that was occuring by my sibling using my dh's personal info-- that could have put hubby in jail. With a confrontation over the phone I was assured this was going to stop. Our rocky relationship at that point was now pretty tainted.
Fast forward, we are trying our best to get out of this house deal. We see that we will lose all our money that was put into this deal. But, my sibling is quite intent on getting money out of this house. The market is horrible and we are continually lowering the price. We are trying to not get upside down. After a discussion with my sibling yesterday I see he now wants us to try to refi to try to keep it as a rental, and possibly sign a quit claim deed to get us off the title and he said we can get it off our credit. That is not an option for us though since we need to get out of this house in order to have a home of our own to live in.
I realize now how consumed my sibling is with money and this deal is making him crazy because he is not in control. Ultimately, we are the ones who will make the decisions. I just want out. I do not want to deal with anyone unethical. Hubby and I are doing are best to do the right thing and live with pride knowing we are doing the right thing.
I am thinking this may very well be the end of my relationship with my sibling once this house sells and they do not receive what they perceive as their due.
It has already affected my relationship with 2 other siblings since they are pretty much obligated to this sibling financially. One is very much twisted into unethical business transactions. The other just owes this sibling lots of $$$$.
Encouragement? Thoughts?/

[JeanLynn81]

So if I read this right, your brother went into the deal 50/50, backed out on paying his half, and now expects his 50% share of the profits?

I don't blame you for wanting out. Don't worry about your brother. Give him his half to shut him up and just move on. If he complains, perhaps its a good idea to sit down with a piece of paper and write down your costs versus his.

This sounds like a brother that I wouldn't trust further than I could throw him. I'm sorry you had to find out this way.

[QueenAngie]

Good luck! I'm not able to give you any advise. Do you & brother have a signed contract?

[mcmama]

Wow, I guess all investors would like the opportunity to get their money out of the houses they invest in. But hey, welcome to 2008.

Your brother invested a certain amount of money. As a partner in this investment, he is owed whatever profit or loss the investment generates. When you close, figure this in accordance with what he has invested. You will likely need a real estate lawyer to prepare this, depending on who is on the deed, the mortgage, and what documentation you have that your brother contributed money toward the purchase of the house.

Your leverage is the shady operation your brother tried to do with your husband's identity. Should your brother try to pursue the matter further, you can bring charges against him.

The real estate market is bringing an unwanted dose of realty to many of us - Unfortunately, this extends to what is real about our bankers, our partners, our families. Cut yourself off from your brother as best you can. He is not worth the worry, no matter who he manipulates. Your first allegiance is to your husband and your own family.

[grt8day]

My brother and I don't have a signed agreement. My hubby and I are on the deed and mortgage. It was more of a 60 (brother) 40 (us) split. Our initial agreement was to sell the house in Aug '08. After all of the turn of events, there is no way I can continue being involved with him in this house as a rental. We already told him we are ready to walk away with nothing (after the sale) and he can have the amount that is gained from the sale. I found it funny that gaining all of the proceeds did not change his demeanor. I realized after getting off the phone, that his thoughts were already planned that we are entitled to nothing. I am trying my best to stay focused on the selling of the house, and being assertive in our decisions. I think it is a hard pill to swallow, knowing we may not be able to have a relationship after this all blows over. It just got tooo ugly....

[mcmama]

Please get proper legal representation if you do not have it already. Negotiating with someone like this puts you at risk. You may find that hiring an attorney actually saves you future problems over this.

If your brother thinks there is money to be gained, he will not hesitate to retain counsel. So I think you should do the same, and be prepared.

[Tracey with 6]

I'm with mcmama, don't give him everything, he stepped out on you when hubby was sick so sock it to him, go egal and get what you deserve!!