Friends don’t let friends buy out home equity

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: A former friend recently went through a divorce and his finances are a mess. To help him out, we offered to buy out his condo equity of about $21,000 for cash. He gave us a quitclaim deed, which we recorded. We bought "subject to" its existing mortgage. However, he "forgot" to tell us the condo homeowner's association has an $8,700 special assessment lien against the condo. When I confronted him, he said he was sorry but he had forgotten about the lien, which the association now threatens to foreclose on us. He doesn't have any money to pay us the $8,700. Do we have any recourse? --Nancy T. DEAR NANCY: If you don't pay the $8,700 condo assessment lien before the association forecloses, you could lose the condo. Yes, your friend is liable to you for the $8,700, but, if he can't afford to pay you, suing him to obtain a judgment might not be worth the hassle. Purchase Bob Bruss reports online. Your situation shows the importance, especially when buying real estate from a friend ...