A friendly break-up, but co-owned property is upside down
My girlfriend and I bought a house together in Los Angeles, on top of the market 3 years ago. It is heavily mortgaged.
We recently split up and she moved out. With the market being what it is, the mortgage is $150,000 higher than today’s market value and we can’t sell it.
My ex-girlfriend wants to quit claim her share of the house to me, and walk away, but I don’t believe the lender will take her name off the loan just because she wants out (why would they?), and I’m in no position to re-finance on my own.
It would be a shame having to resort to a short sale when I could remain here on my own.
What to do?