Dear Ms. Lank: My son and his girlfriend bought a home together two years ago. It cost $240,000 with no money down and an adjustable rate mortgage. They have since split up. The girlfriend wanted to stay in the home as she has a child. My son moved out and she agreed to pay all the bills. I think her new boyfriend helps.

My son has since found a wonderful woman and wants to start a life with her, but cannot fully till this house concern is gone from his life. The girlfriend cannot take over the loan on her own, as she does not make enough money. As we understand it, just signing the house over to her will not take him off the mortgage note. He's ready to sell the house for less than they paid but the girlfriend will not help pay the difference. His life is on hold at this point. Is there anything he can do? -- K.A.

Answer: Not unless he's willing to sell and "pay the difference" on his own. He's just lucky monthly payments are being made. His credit record would suffer if they weren't. Legally speaking, each of them is responsible for the entire debt. And yes, giving up his share of ownership wouldn't change his mortgage liability.

It's important to remind people of the complications that can arise when unmarried partners buy property together and later split up. Or married partners, for that matter, particularly right now in areas where the real estate market is difficult.

Your son does have the right to go to court and force "partition" -- a public auction sale of the property and division of the proceeds. But that won't do much good if the place can't even be sold on the open market for enough to pay off the loan. Again, it would work only if he were willing to make up the whole shortfall with his own funds.

Selling As Is

Ms. Lank: Where can you get financing to buy a home as is? -- T.W.

Answer: If the house isn't in good enough condition to meet the standards of a regular mortgage lender, usually the seller agrees to take back a private mortgage, acting as the bank.

"As is" can mean almost anything, though. If the house is in fairly good shape, perhaps a regular lender will consider it after all. There's even a special FHA mortgage, 203k, that lends enough to cover both purchasing and renovating a house that needs considerable work. Perhaps a mortgage broker could help locate a lender handling that program.

Lost In Florida

Dear Ms. Lank: We had to sell our Miami condo at a loss. Somebody told us we could take that as a deduction on our tax return. Somebody else told us we couldn't. Which is correct? -- D.S. Continued...