Posted on: 18th Jul, 2010 02:23 pm
I live in Massachusetts. I bought a townhouse about 5 years ago, and my mother moved in with me, giving me a "GIFT" of 100,000 for the downpayment. I am the sole borrower on the mortgage, but we added her to the deed recently. We are now in a situation where she will be finding another place to live, however, she wants her "GIFT" back. I was told that legally, since the money was given as a "gift" and recorded as so with the mortgage, legally she can't ask for the money back. What are my options, should I re-finance and "buy her out" at fair market value? And how do I get her off the deed?
welcome jal,
your mother needs to sign a quit claim deed and remove her name from the property deed. you can pay her a stipulated amount of money and ask her to sign a quit claim deed. as far as the mortgage is concerned, if her name is not mentioned on the mortgage docs, then you won't have to refinance the loan. however, if her name is mentioned on the loan docs, you'll have to refinance the loan and remove her from the loan.
your mother needs to sign a quit claim deed and remove her name from the property deed. you can pay her a stipulated amount of money and ask her to sign a quit claim deed. as far as the mortgage is concerned, if her name is not mentioned on the mortgage docs, then you won't have to refinance the loan. however, if her name is mentioned on the loan docs, you'll have to refinance the loan and remove her from the loan.