Expert: Karyn Foley - 10/1/2007

Question
When my mother-in-law bought the house 11 years ago, her niece gave her 20k to add to her down payment and for the first 5-6 years she was paid about 5k leaving her about 15k plus interest. Currently, my mother-in-law is going to have a surgery and wants her name remove in the title. She offered her niece 15k plus interest with the amount that she would have gotten if she invested it but she won’t accept the offer (She’s pretty hostile about it). My mother-in-law already talked to a lawyer and she still won't accept the offer. Where can i get additional information and educate myself about it. Do you know where I can find some references of the law or any suggestions you may have to solve this issue?


Answer
Dear Jun:
 A co-signer, as you now know,is not a wise thing to do without some sort of legal document spelling out all of the details including how to get name removed if the other party does not agree.  You cannot force this issue; why ask me when you already received legal advice?  If you had not sought counsel with a real estate attorney, then do so just to get a second opinion.  Now, the only advantage I see is that when the house sells, if your mother in law is on title, then she should be able to receive part of the profits.  Now, there may or may not be a partition action that could be initiated.  I am not certain about that, and it requires a lawyer.  That is sometimes used out here when two parties are on title and one refuses to sell.  I may even have the term incorrect.  As we are not "allowed to practice law without a license" I hesitate even going any further.  But, if your mother in law wants her money so urgently and she is pushing to sell, and her name is indeed on the title legally, then you may have some recourse.  Again, consult a real estate attorney.  Now, even if the name is off the title, the question needs to be asked if her name is on the loan as well.  Even if she ultimately removes her name from the title, either by sale or a quit claim deed, she still has accountability on the loan. What a mess, I am sorry a generous woman is being so badly respected.  A question I have is if the 20K was a gift or a loan.  That may have some bearing on the issue, and was there any paperwork to support either scenario?  If your mother in law is going in for serious surgery and may be subject to a turn for the worse, and she actually is on title as one of the owners, she should make certain that she has made plans (such as a well) to provide that the proceeds go to whomever she wishes in the event she dies.  That issue should be immediately addressed even if the surgery is minor and she is still fairly young.  Life throws some wicked curves, and she would want her heirs to avoid a legal fight in the future.  Future planning is important now.  Good luck, and don't play lawyer.  This is too important to solve on your own.  Karyn Foley