My husband and I own 48% interest in a house and his mother owns 52% in the house. Our 48% with each other is community property, but the ownership with his mother is tenants in common.
She has never lived in the house and has never paid anything towards the house ever other than $30,000 that went towards our down payment. We have been living in the house and have paid all of the HOA fees, property taxes and mortgage payments, PLUS an extra $1000 a month towards the loan principle.
She has said she wants to be bought out for $30k (how much she gave us). My husband is afraid that if he ever upsets her that she will force the sale of the house and demand 52% of the house since it will be paid off completely in 10 months by us.
Are we basically screwed? It looks like she will get 52% of the house even though we have paid for the entire house. So if the house sales, we will get about $200,000 back and she will get over $200,000 when she only paid $30k!
What can we do?
do a cash-out refi, give the $30k to the mother(in-law), and remove her from the deed when you refi! even though your home will be paid off in 10 months, you still need to either refi or take out a loan to pay the mother, so that you can be done with her. also, have an attorney do up the paperwork (f you don’t refi) to say that, upon accepting this $30k, she forfeits her ownership interest, and deeds the house to you and the husband.
get her off that title ASAP, girl!
ummm… buy her out. That would be the smartest thing. And in the future NEVER borrow that much from family. His mother would have to be a big time bitch for forcing you to sell, but she is in her rights to do so. You shouldv’e set up a repayment schedule with her when you first borrowed the money. I’d force you to sell the house too, if I were her.
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30K is easy to get if you have so much equity in the house. Refinance it, remove her from title, give her the 30K, and move on.
There are some terrific programs out there for a refinance… you wouldn’t necessarily have to get another 30 year loan or anything. If you have additional questions, don’t hesitate to contact me.
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In the mortgage business for 12 years.
do a cash-out refi, give the $30k to the mother(in-law), and remove her from the deed when you refi! even though your home will be paid off in 10 months, you still need to either refi or take out a loan to pay the mother, so that you can be done with her. also, have an attorney do up the paperwork (f you don’t refi) to say that, upon accepting this $30k, she forfeits her ownership interest, and deeds the house to you and the husband.
get her off that title ASAP, girl!
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