Mother in Law's Rights

[dbk777]

Our home is located and deeded in NC. When purchasing our home, my wife and I did not have good enough credit to go it alone. We put $10,000 cash down, and my mother in law co-signed the home with us. Myself, wife, and mother-in-law's name appear on the deed. My mother-in-law is in a period of being mad at us and has threatened to sell the house out from underneath us and keep the equity. She has helped us make two payments over the five years we have owned the home. We have made all other payments and can support that fact with cancelled checks. Does she have that right? Is she due any part of the equity in our home, even though she hasn't paid into it.
Any answers, advice would be most appreciated.
David

 

[Seanscott]

If Mama's name is on the deed WITH you, then she is a CO-OWNER, she cannot sell the house out from under you. She is acting as if she is a landlord and you are the tenants. Not so!

As far as being able to claim any equity if you were to sell your home - I don't know, but I think, you probably put her name on the title to protect her interest as a co-signer.

Hopefully somebody with some real knowledge will come along and answer you.

Good luck!

 

[5geckos]

I'm not an attorney, and I'm not quite sure about NC, but in IN, all the parties who's names appear on the deed will have to agree to allow the property to be sold or it can't be sold at all. Further, you would have to agree to allow her to transfer her rights to anyone else before she could do so. She is entitled to equity if she has an interest in the property. There are two issues here. 1st... She has an equity interest in the house. She is on the deed/title, she is entitled to The amount the house sold for after all liens and encumbrances are paid for and only her percentage of that. Since she is co-borrower and is on title, she is obliged to pay the payment. She can't just up and sell the house and put you out on the street and suck up any equity that you've built up in the house.

Your wisest move would be to a.) pay her back any money that you owe her for her payment of the mortgage durring any period that you needed help. (God forbid she would obsolve you of the debt because she loves you and you are her children for crying out loud,) then b.) refinance and get her removed from the deed. This will require her to relinquish her interest in the real estate by signing a quit claim deed over to you.

From the sound of things; however, you might not finder willing to do so. If this is the case, get a real estate attorney and discuss the matter with him/her.