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Old 10-03-2013, 12:08 AM
 
1 posts, read 2,112 times
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To simplify this my soon to be mother in law will be person A and I will be person B.

I Person B gave Person A $104,000 to put down on a house for myself and soon to be husband. We both finsihed school and could not qualify for a mortgage at the time. We signed contracts in March of 2012 and moved into our new home in September 2012. At which time Person A retired and moved in with us. Now one year later Person A wants to move to her daugthers in another city and is forcing us to sell.

Unfortaunately we both still can not meet the requriements to get a mortgage that we know of. Now Person A is also saying she is entitled to a portion of the equity. We owe 210 or so and the house is worth about 410 or so.

My question is since Person A is not related to me Person B and the is no rightof advancment if I can argue a resulting trust was created with Person A. Person A wants 30,000 to walk away and we feel we are getting taken advantage of.

Also in hindsight yes it was a dumb move we know that more interested in what legal recourse we have moving forward so we dont have to move since she has already listed the house against our wishes.


Thanks for helping to save our dream home!!!!
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Old 10-03-2013, 12:21 AM
 
Location: Long Island
9,038 posts, read 18,355,935 times
Reputation: 4745
Quote:
Originally Posted by djweaver2 View Post
To simplify this my soon to be mother in law will be person A and I will be person B.

I Person B gave Person A $104,000 to put down on a house for myself and soon to be husband. We both finsihed school and could not qualify for a mortgage at the time. We signed contracts in March of 2012 and moved into our new home in September 2012. At which time Person A retired and moved in with us. Now one year later Person A wants to move to her daugthers in another city and is forcing us to sell.

Unfortaunately we both still can not meet the requriements to get a mortgage that we know of. Now Person A is also saying she is entitled to a portion of the equity. We owe 210 or so and the house is worth about 410 or so.

My question is since Person A is not related to me Person B and the is no rightof advancment if I can argue a resulting trust was created with Person A. Person A wants 30,000 to walk away and we feel we are getting taken advantage of.

Also in hindsight yes it was a dumb move we know that more interested in what legal recourse we have moving forward so we dont have to move since she has already listed the house against our wishes.


Thanks for helping to save our dream home!!!!
Sounds like you need to talk to a real estate attorney!

Do you have any documentation of giving her the $104,000? Did you give her a check with a notation in the "memo" section? Do you have a written agreement that this was a loan to be repaid, or could it be construed as a gift? Did you consult an attorney before you did this?

With regard to the equity, did Person A ever pay the mortgage? In whose name are the utilities? Who has been paying for the upkeep?
Unfortunately, the fact that she is the only one on the deed will most likely be a real problem for you; please talk to an attorney, unless you want to give Person A the $30,000.
Also, maybe you should talk to an experienced Loan Officer regarding the possibility of getting a mortgage in your own name(s) at this time (what State are you in?).
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Old 10-03-2013, 12:28 AM
 
35,121 posts, read 37,802,296 times
Reputation: 61840
Quote:
Originally Posted by djweaver2 View Post
To simplify this my soon to be mother in law will be person A and I will be person B.

I Person B gave Person A $104,000 to put down on a house for myself and soon to be husband. We both finsihed school and could not qualify for a mortgage at the time. We signed contracts in March of 2012 and moved into our new home in September 2012. At which time Person A retired and moved in with us. Now one year later Person A wants to move to her daugthers in another city and is forcing us to sell.

Unfortaunately we both still can not meet the requriements to get a mortgage that we know of. Now Person A is also saying she is entitled to a portion of the equity. We owe 210 or so and the house is worth about 410 or so.

My question is since Person A is not related to me Person B and the is no rightof advancment if I can argue a resulting trust was created with Person A. Person A wants 30,000 to walk away and we feel we are getting taken advantage of.

Also in hindsight yes it was a dumb move we know that more interested in what legal recourse we have moving forward so we dont have to move since she has already listed the house against our wishes.


Thanks for helping to save our dream home!!!!
This question can ONLY be answered by a Real Estate Attorney and no one on this can or is allowed to offer any legal advice at all. (it is against TOS)
The only thing that can be offered here is an ill informed "guess" since no one knows all the details and legal requirements.

Contact a Real Estate Attorney immediately to see what can be done.
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Old 10-03-2013, 05:50 AM
 
6,359 posts, read 7,324,210 times
Reputation: 10807
Quote:
Originally Posted by djweaver2 View Post
Person A wants 30,000 to walk away and we feel we are getting taken advantage of.
Let's see if I have this right. You gave someone $104,000 so that they could buy a house for themselves (since you are not listed on the Deed). You have no written agreement about the money you gave or that you even have any right to reside in the house. They now want to sell their house...and you feel that you would be taken advantage of if they split their profit with you. Hmmm....

Whatever you do, do NOT give them $30,000 simply to "walk away". That will not solve your problem and would likely only further complicate your situation with no resolution in sight. I hope you are on good terms with everyone. This could get especially ugly if you and your boyfriend split up--leaving "Person A" with little reason to be charitable.

As others have mentioned, you need to get counsel from a qualified real estate attorney immediately. There are many facts not in evidence here and only an attorney can properly review all of your circumstances.


P.S. By the way, if the house gets sold or if you can get the deed in your name somehow (purchase with new mortgage or with Seller financing?--if allowed on her mortgage) it would seem more than fair for her to net $30,000. Absent any written contract to the contrary, any profit seems to be legally hers anyway.
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Old 10-03-2013, 05:53 AM
 
Location: Bloomington IN
5,862 posts, read 7,085,877 times
Reputation: 14078
Quote:
Originally Posted by djweaver2 View Post
To simplify this my soon to be mother in law will be person A and I will be person B.

I Person B gave Person A $104,000 to put down on a house for myself and soon to be husband. We both finsihed school and could not qualify for a mortgage at the time. We signed contracts in March of 2012 and moved into our new home in September 2012. At which time Person A retired and moved in with us. Now one year later Person A wants to move to her daugthers in another city and is forcing us to sell.

Unfortaunately we both still can not meet the requriements to get a mortgage that we know of. Now Person A is also saying she is entitled to a portion of the equity. We owe 210 or so and the house is worth about 410 or so.

My question is since Person A is not related to me Person B and the is no rightof advancment if I can argue a resulting trust was created with Person A. Person A wants 30,000 to walk away and we feel we are getting taken advantage of.

Also in hindsight yes it was a dumb move we know that more interested in what legal recourse we have moving forward so we dont have to move since she has already listed the house against our wishes.


Thanks for helping to save our dream home!!!!
There is some critical information missing here. Whose name is on the deed or title of the house? Whose name is on the mortgage? Those can be different signatures. You mention you signed contracts. What contracts?

If your name is on the deed or title, she cannot sell the house without your signature.
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Old 10-03-2013, 06:27 AM
 
1,263 posts, read 2,644,348 times
Reputation: 1872
You say you gave her 104k and the house has roughly 210k in equity. You only purchased it a year ago (Sept 2012), so it can't have appreciated that much. Did your boyfriend's mother put down half of the down payment out of her own funds? If so, then don't you think she should get some of the appreciation?
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Old 10-03-2013, 09:53 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,297 posts, read 17,497,824 times
Reputation: 22122
And let's not forget that if she gave MIL $104K, it needed to be reported to IRS for possible gift tax ramifications. (You'll be filing amended returns for that year, if you truly gave her the money. Get a CPA for that, please.)

What a cluster. Get a real estate lawyer, immediately.
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Old 10-03-2013, 12:28 PM
 
3,317 posts, read 7,253,255 times
Reputation: 4095
If you are not on the mortgage, Deed, or Note, Person A holds all the cards and can evict you and sell the property.

Hopefully, you have firm records of the monies transferred to her.

Sounds like Person A is a real B.
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Old 10-03-2013, 02:42 PM
 
7,672 posts, read 11,278,341 times
Reputation: 15249
Quote:
Originally Posted by LOL_Whut View Post
You say you gave her 104k and the house has roughly 210k in equity. You only purchased it a year ago (Sept 2012), so it can't have appreciated that much.
Slightly off topic, but you're wrong. Depending upon where the OP lives, it is very easy for a house to have appreciated $106k in one year. In fact, I have two properties that have appreciated more than that amount myself: a house in Las Vegas and a condo in Miami Beach. Real estate prices have gone up 24.9% year over year in Las Vegas; and while I don't know the exact figure for Miami off-hand, I can tell you that I paid a little over $300k for an oceanfront condo last fall, and identical units in the building are now selling for $450k - $480k.
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Old 10-04-2013, 08:27 PM
 
3,442 posts, read 4,470,936 times
Reputation: 5387
Quote:
Originally Posted by Jkgourmet View Post
And let's not forget that if she gave MIL $104K, it needed to be reported to IRS for possible gift tax ramifications. (You'll be filing amended returns for that year, if you truly gave her the money. Get a CPA for that, please.)

What a cluster. Get a real estate lawyer, immediately.
bingo............( on the gift tax )
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