Gifted down payment

[dupre]

What is the name of your state (only U.S. law)? Ca

 

[dupre]

Forgot to write down issue. Bought a house from my sister with 80000 of gifted equity from her. House was bought by way of bank loan. Loan and title in my name. Can she take it back somehow?

 

[adjusterjack]

Lenders generally require a letter from the donor attesting that it's a gift with no expectation of return.

Did your lender do that?

And did you keep a copy?

That would pretty much put the kibosh on any attempt she would make to recover the money.

Even without that letter, I don't believe that any judge would believe that the $80,000 value was a loan if there wasn't any documentation with your signature.

Why do you ask? Are you estranged now and she suddenly wants the money?

 

[dupre]

Yes... We are estranged and she wants it back... She was supposed to by it back from me after 3 years after she rebuilt her credit but she kept screwing up....ten years have past and she's still can't get a loan..

 

[adjusterjack]

What have the living arrangement been for the past 10 years?

Does she live in it and you live elsewhere or do you live in it and she live elsewhere? Something else?

If she lives in it, what are the financial arrangements? Does she pay rent, taxes, insurance?

What was the purpose of the sale back then? Why couldn't she just keep it if she had $80,000 equity in it?

 

[dupre]

What have the living arrangement been for the past 10 years?

Does she live in it and you live elsewhere or do you live in it and she live elsewhere? Something else?

If she lives in it, what are the financial arrangements? Does she pay rent, taxes, insurance?

What was the purpose of the sale back then? Why couldn't she just keep it if she had $80,000 equity in it?

she lives in it and has been for the last ten years. she pays the note every month which includes taxes and insurance. since her and her husbands credit was horrible she got a horrible loan from countrywide at the time that was adjusting to a payment she could not afford. she was already behind at the time. she asked me as a favor to buy the house from her so she could get a better rate and raise her kids in the same house with a decent school district. if i remember correctly we were able to use the equity as a down payment. i was reluctant like i said but i agreed.

 

[Zigner]

Here is the OP's earlier thread: https://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/mercy-refi-628059.html

 

[dupre]

Here is the OP's earlier thread: https://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/mercy-refi-628059.html

this was me. did not remember the proper history until i went down to the recorders and pulled up paperwork. my mistake sorry. was not a refi but a sold house.

 

[Zigner]

this was me. did not remember the proper history until i went down to the recorders and pulled up paperwork. my mistake sorry. was not a refi but a sold house.

You didn't remember that you bought a house? I believe it, but it still boggles the mind.

 

[dupre]

You didn't remember that you bought a house? I believe it, but it still boggles the mind.

ya...i know.....i didnt think it would be for long so i kinda put it in back of my mind...

 

[adjusterjack]

she lives in it and has been for the last ten years. she pays the note every month which includes taxes and insurance. since her and her husbands credit was horrible she got a horrible loan from countrywide at the time that was adjusting to a payment she could not afford. she was already behind at the time. she asked me as a favor to buy the house from her so she could get a better rate and raise her kids in the same house with a decent school district. if i remember correctly we were able to use the equity as a down payment. i was reluctant like i said but i agreed.

That explains everything.

She doesn't want the $80K back, she wants the house back.

Simple solution: Tell her to get a loan that will retire your loan and you will sign the house back over to her.

If she can't qualify then she stays a tenant and continues to pay rent.

 

[LdiJ]

she lives in it and has been for the last ten years. she pays the note every month which includes taxes and insurance. since her and her husbands credit was horrible she got a horrible loan from countrywide at the time that was adjusting to a payment she could not afford. she was already behind at the time. she asked me as a favor to buy the house from her so she could get a better rate and raise her kids in the same house with a decent school district. if i remember correctly we were able to use the equity as a down payment. i was reluctant like i said but i agreed.

So...you bought the house minus the 80k equity that your sister had in the house. She has made ALL of the payments on your mortgage over the last ten years. You now want to what?...sell the house and collect the proceeds even though you have not invested a single penny into the home?

Legally you may very well be able to get away with that. Morally, you are quite likely due to rot in He11.