personal loan-deed related

What is the name of your state? California

I bought a house by took out a mortgage from the bank, and the second personal loan $25000 from the my in-law. The in-law was my realtor, and loan officer for the house. They insisted me to put that loan in form of gift letter from them for a better chance to qualify for the mortgage, or they had other plan which I did'n aware of. That was the first time that I had ever dealt with these paperwork or sign off all the loan related applications.

After that my future in-law family wanted me to sign a Deed of trust on the personal loan against the property, which I did sign in front of public notary. Now I decide to pay them off that $25000, but they refuse to sign the quit claim deed of trust in front of notary to cancel and release all the rights on the property, saying that they had not record the deed of trust to public record yet. To tell the truth, they did not even let me read the deed, or have a copy since they said it would be an insult to them if I didn't trust them plus they lented me the money.

I still have to pay them monthly interest which was agreed from the beginning until the loan are paid off.

Should I pay him off and get the original deed back without them sign in front of notary since they refuse to? would that good enough to protect my property?

Can them claim tax on the gift letter for that $25000, and still get monthly interest from me?

How should I handle this and get out of there safely,
I don't really want to keep relationship with them any more, since they threaten to go to lawyer when I insist them to sign in front of notary.

Please help.

I really appreciated for your information.

[HomeGuru]

[quote]Originally posted by monitor
[b]What is the name of your state? California

I bought a house by took out a mortgage from the bank, and the second personal loan $25000 from the my in-law. The in-law was my realtor, and loan officer for the house. They insisted me to put that loan in form of gift letter from them for a better chance to qualify for the mortgage, or they had other plan which I did'n aware of. That was the first time that I had ever dealt with these paperwork or sign off all the loan related applications.

After that my future in-law family wanted me to sign a Deed of trust on the personal loan against the property, which I did sign in front of public notary. Now I decide to pay them off that $25000, but they refuse to sign the quit claim deed of trust in front of notary to cancel and release all the rights on the property, saying that they had not record the deed of trust to public record yet. To tell the truth, they did not even let me read the deed, or have a copy since they said it would be an insult to them if I didn't trust them plus they lented me the money.

I still have to pay them monthly interest which was agreed from the beginning until the loan are paid off.

Should I pay him off and get the original deed back without them sign in front of notary since they refuse to? would that good enough to protect my property?

Can them claim tax on the gift letter for that $25000, and still get monthly interest from me?

How should I handle this and get out of there safely,
I don't really want to keep relationship with them any more, since they threaten to go to lawyer when I insist them to sign in front of notary.

Please help.

I really appreciated for your information.

**A: go to a real estate attorney as soon as possible.