Your Co-Owner Won’t Pay the Mortgage. What Are Your Options?

Owning a house with another person can become complicated when one co-owner stops paying the mortgage.

You may be making the full payment every month simply to prevent the loan from going into default, while the other owner continues to have an ownership interest in the property. You may also wonder whether you can recover the payments you made, force the other owner to contribute, or sell the property and end the co-ownership relationship.

For Nevada property owners, the answer depends on several factors, including the deed, ownership interests, mortgage documents, agreements between the co-owners, payment history, and circumstances surrounding the property.

If you and your co-owner cannot resolve the situation, a Partition Actions proceeding may provide a legal mechanism for ending the co-ownership relationship and resolving the property’s future.

But there is an important distinction to understand immediately:

Your obligation to the mortgage lender and your rights against your co-owner are two separate issues.

What Happens If One Co-Owner Stops Paying the Mortgage?

If two people are borrowers on a mortgage, the lender generally looks to the loan documents not the private arrangement between the co-owners to determine who is responsible for making payments.

Suppose two siblings jointly own a Nevada home and both signed the mortgage.

If one sibling stops contributing, the other cannot simply tell the lender:

“My co-owner did not pay their half.”

The lender may still expect the required payment under the loan agreement.

A missed payment can potentially result in:

• Late fees
• Damage to credit
• Collection activity
• Default
• Foreclosure proceedings

That makes the situation urgent.

If you are the co-owner making the payments, you may need to protect the property and your credit while separately evaluating whether you have a claim against the non-paying co-owner.

Does the Deed Determine Who Must Pay the Mortgage?

Not necessarily.

The deed establishes ownership, while the mortgage or promissory note establishes the borrowers’ obligations to the lender.

For example, two people may own a property as tenants in common, but only one may be obligated on the mortgage.

Alternatively, both may be on the deed and the loan.

The parties may also have a separate written agreement stating that one owner will pay a particular percentage of the property’s expenses.

Therefore, reviewing the deed alone is not enough.

An attorney may need to examine:

• Recorded deed
• Promissory note
• Deed of trust or mortgage
• Purchase agreement
• Closing documents
• Co-ownership agreement
• Payment records
• Property tax records
• Insurance documents

The documents can help establish the parties’ respective rights and obligations.

What If I Pay the Entire Mortgage to Protect the Property?

If your co-owner stops paying, you may decide to cover the full mortgage temporarily.

That can protect the loan and property, but it can also create a dispute over whether you should receive credit for payments made on behalf of the other owner.

Keep detailed records.

Document:

• Date of each payment
• Amount paid
• Source of funds
• Mortgage statement
• Payment confirmation
• Communications with the co-owner
• Any agreement regarding reimbursement

For example, if you normally owe 50% but begin paying 100%, maintain a clear record showing the additional amount you paid.

Whether you can recover those amounts, obtain an offset, or receive a credit in a later property accounting depends on the specific facts and applicable law.

This issue can become particularly important in a partition action.

Can You Make Your Co-Owner Pay Their Share?

There is no simple rule that automatically allows one co-owner to send the other a bill and obtain immediate payment.

The answer may depend on:

• The ownership agreement.
• Contractual obligations.
• The parties’ ownership interests.
• The type of expense.
• Previous payment arrangements.
• Contributions made by each owner.
• Whether the property is eventually sold.
• Whether a partition action is filed.

A written co-ownership agreement can make the situation considerably clearer because it may establish how mortgage payments, taxes, insurance, repairs, and other expenses are divided.

Without one, the parties may need to establish their respective rights through negotiation or litigation.

What Is an Accounting Between Co-Owners?

An accounting is essentially a financial reconciliation of the amounts each party paid or received in connection with jointly owned property.

This can become important when co-owners disagree over expenses.

For example, suppose two people own a home equally.

Over three years:

• Owner A pays $60,000 toward the mortgage.
• Owner B pays $20,000.
• Owner A also pays $8,000 for necessary repairs.
• Owner B receives $12,000 in rental income.

A final division of the property may require more than simply saying:

“We each own 50%, so divide the equity in half.”

The parties may need to examine the financial history of the property.

Depending on the circumstances, relevant issues can include:

• Mortgage payments
• Property taxes
• Insurance
• Necessary repairs
• Improvements
• Rental income
• Other property-related expenses

The accounting issue can become part of the broader dispute over how the property and proceeds should ultimately be handled.

What If the Co-Owner Lives in the House but Does Not Pay?

This can make the dispute significantly more complicated.

Imagine that two siblings own a home together, but one sibling lives in the property without contributing to the mortgage.

The other sibling may feel they are effectively financing the occupant’s housing.

At the same time, the occupying sibling may argue that they are providing maintenance, paying utilities, or caring for the property.

The parties may therefore disagree about the economic benefits and burdens associated with occupancy.

Keep records of:

• Mortgage payments
• Utilities
• Property taxes
• Insurance
• Repairs
• Maintenance
• Improvements
• Rental value
• Any rent actually paid
• Communications concerning occupancy

The financial accounting may ultimately need to consider more than mortgage payments alone.

Can You Stop Paying Your Share Too?

This is a dangerous strategy to adopt without understanding the mortgage documents.

If you are a borrower on the loan, deliberately stopping payments because your co-owner stopped paying may expose you to the same consequences as the other borrower.

The lender may not care which co-owner caused the problem.

A missed payment can potentially affect both borrowers.

Before withholding payments, consider the potential consequences for:

• Credit
• Loan status
• Late fees
• Default
• Foreclosure
• Equity
• Your ability to refinance

If protecting the property requires you to make payments temporarily, you can separately evaluate your potential claims against the co-owner.

The important point is:

Do not allow a dispute with your co-owner to unintentionally become a mortgage default.

Can You Sell the House if Your Co-Owner Refuses?

Potentially.

If both parties voluntarily agree, they can generally work toward selling the property and dividing the proceeds according to their agreement and legal interests.

The problem arises when one co-owner wants to sell and the other refuses.

A co-owner may potentially pursue a partition action to ask the court to resolve the co-ownership relationship.

Nevada law permits qualifying joint tenants and tenants in common to seek partition of real property. When physical division would cause great prejudice to the owners or under other circumstances provided by Nevada law, a sale may be ordered.

For a typical single-family home, physically dividing the property between co-owners is often impractical.

That can make a sale or negotiated buyout the more realistic resolution.

What Is a Partition Action?

A partition action is a court proceeding used to resolve disputes involving co-owned real property.

It can become relevant when:

• One owner wants to sell and another refuses.
• One owner stops contributing to property expenses.
• The owners disagree about their respective interests.
• One owner wants to buy out the other.
• The parties cannot agree about the property’s future.

Nevada’s partition statute allows qualifying co-owners to bring an action for partition according to their respective interests.

A partition case can therefore provide a legal mechanism for ending a co-ownership relationship when voluntary negotiations fail.

However, the court process is not necessarily limited to deciding whether the property should be sold.

The parties’ financial contributions and property-related issues may also need to be addressed.

Can You Get Credit for Mortgage Payments You Made?

Potentially, but the answer depends on the circumstances.

If one co-owner pays more than their agreed or proportional share of a property expense, that may become relevant to the financial accounting between the parties.

For example, if two owners each have a 50% interest but one owner pays the entire mortgage for 18 months, the paying owner may argue that they should receive an appropriate credit when the property is ultimately divided or sold.

But not every payment necessarily produces an automatic reimbursement.

The legal analysis may depend on:

• Whether the payment was voluntary.
• Whether there was an agreement.
• Whether the payment benefited the property.
• Whether the other owner had an obligation to contribute.
• Whether the property generated income.
• Whether other expenses offset the claim.
• Whether the parties’ ownership interests are equal.

This is one reason why a detailed financial accounting can be important.

What About Property Taxes, Insurance, and Repairs?

The mortgage is only one part of the financial burden associated with owning real estate.

If one co-owner refuses to contribute, the same dispute may arise over:

Property Taxes

Failure to pay property taxes can create serious consequences, including liens and other collection issues.

Insurance

Maintaining appropriate insurance can protect the property and the owners from certain risks.

Necessary Repairs

Roof leaks, plumbing failures, electrical problems, and other necessary repairs can affect the property’s condition and value.

Improvements

Improvements can be more complicated because one owner may consider them necessary while another may consider them optional.

Keep records of each category separately.

A comprehensive accounting is much easier when expenses are documented from the beginning.

What If the Property Is Rented Out?

Rental property creates another layer of accounting.

Suppose two people own a Nevada rental property equally, but one co-owner collects all the rent while the other pays the mortgage.

The financial dispute may involve both expenses and income.

Relevant records may include:

• Lease agreements
• Rent payments
• Property management statements
• Mortgage payments
• Repairs
• Taxes
• Insurance
• Utilities
• HOA fees
• Maintenance expenses

A partition or other property dispute may therefore require a broader financial analysis.

Do not assume that the mortgage payment alone determines what each owner ultimately receives.

Can One Co-Owner Buy Out the Other?

Yes.

A buyout may be preferable when one owner wants to retain the property and the other wants to exit.

The parties may negotiate a value based on:

Property value − Mortgage and other applicable obligations = Equity

The departing owner may then receive an agreed amount representing their interest, subject to any adjustments the parties negotiate or that may be legally appropriate.

But the transaction should address more than the purchase price.

The parties should also determine:

• Who receives title.
• Whether the mortgage will be refinanced.
• Who pays closing costs.
• How property taxes are handled.
• How outstanding repairs are treated.
• Whether prior expenses are accounted for.
• Whether either party has other claims.

A title transfer without addressing the mortgage can leave the departing owner financially exposed.

What If the Co-Owner Refuses to Sell or Buy Me Out?

If negotiation fails, partition may become the next option.

One co-owner generally cannot simply remove another co-owner from title because they stopped paying the mortgage.

Likewise, a co-owner cannot necessarily force the other person to buy their interest privately.

When voluntary solutions fail, the court may provide a process for determining the parties’ interests and resolving the property.

The appropriate remedy depends on the ownership structure and circumstances.

What Documents Should You Gather?

Before discussing a potential partition action, buyout, or accounting, collect the property’s financial and ownership records.

Important documents can include:

• Recorded deed
• Mortgage or promissory note
• Deed of trust
• Closing disclosure
• Purchase agreement
• Co-ownership agreement
• Bank statements
• Mortgage statements
• Property tax records
• Insurance records
• Repair invoices
• Improvement receipts
• Rental records
• Written communications between co-owners

Also create a chronological payment history.

For example:

A clear payment history can make the financial dispute substantially easier to understand.

How a Nevada Real Estate Attorney Can Help

A Nevada real estate attorney can review the ownership and financial relationship between the co-owners and help determine what options may be available.

Legal counsel can help evaluate:

• Title and ownership interests.
• Mortgage obligations.
• Co-ownership agreements.
• Mortgage payment history.
• Property expenses.
• Rental income.
• Potential accounting claims.
• Buyout options.
• Voluntary sale.
• Partition.
• Court-ordered sale.

For property owners in Las Vegas and Reno, early advice can help prevent a mortgage dispute from becoming a larger conflict involving foreclosure, deteriorating credit, lost equity, or expensive litigation.

Do Not Let a Co-Owner’s Nonpayment Become Your Financial Crisis

If your name is on the mortgage, the lender may continue to hold you responsible even when your co-owner refuses to contribute.

That makes immediate documentation and careful financial planning important.

Continue preserving mortgage statements and payment records, communicate with the co-owner in writing where appropriate, and understand the potential consequences before taking action that could affect the loan.

If the parties cannot resolve the dispute, a buyout, sale, accounting, or partition proceeding may provide potential paths toward ending the financial relationship.

Frequently Asked Questions

About Milan Chatterjee

This article was prepared by Milan Chatterjee, a Nevada and California licensed attorney and founder of My Real Estate Lawyer, a real estate law practice dedicated to protecting property owners, investors, homeowners, businesses, and other clients throughout Nevada.

Milan represents clients in matters involving partition actions, co-owned property disputes, purchase and sale agreements, property transfers, title disputes, real estate litigation, boundary and easement disputes, landlord-tenant matters, HOA disputes, and complex real estate ownership conflicts.

He earned his Juris Doctor from UCLA School of Law and studied at New York University School of Law as a visiting student. Before entering private practice, he served as Associate Compliance Counsel at Las Vegas Sands Corporation, where he advised on corporate governance, regulatory compliance, investigations, and risk management.

Today, through My Real Estate Lawyer, Milan helps buyers, homeowners, investors, sellers, and property owners throughout Las Vegas, Reno, and Nevada navigate complex real estate disputes and protect their property rights.

Conclusion

When a co-owner stops paying the mortgage on a jointly owned Nevada property, the problem involves both the mortgage and the co-ownership relationship.

If you are also a borrower, you may remain responsible to the lender even if your co-owner refuses to pay. Protecting the loan and property may therefore require you to make payments while you evaluate whether you can recover or receive credit for amounts paid beyond your share.

Detailed records of mortgage payments, taxes, insurance, repairs, improvements, and rental income can become important when determining the parties’ respective financial interests.

If the co-owner refuses to contribute, sell, refinance, or negotiate a buyout, a partition action may provide a legal mechanism for resolving the co-ownership relationship. Nevada law permits qualifying co-owners to seek partition and, when appropriate, a sale of the property.

The most important step is not to ignore the problem. A mortgage dispute can affect both your property and your personal financial position.