Posted on: 27th Mar, 2009 11:02 am
My boyfriend was doing a rent to own on a townhouse, and later he comes to find out that the person who owns the house is not paying the mortgage that my boyfriend has been giving him every month. My boyfriends credit is that great so wasn't able to but the house. I stepped in and now the house is in my name. Their was a gift of equity that was involved and now when I want to go and sell this house, because we are having problems, he believes he is entitled to the gift of equity and the profit of the house, if any. Is he? I am so confused......someone give me some insight.
He was renting to own it right? Was that the agreement that you had when bought the house from the start? Did you handle this as a business transaction? Well...
It depends on the terms and conditions you establish between you and him as far as renting to own.
Are you selling him the house for face value or for what your loan amount is to the bank?
If you are selling the house for face value meaning, how ever much the house is worth that is what you are financing, then I would assume you would calculate the balance of the loan, what he has payed you, the pay off amount and his equity that he may have from the payments he has made.
Now, if you went into this only financing what you purchase the house for and he already had equity in the property, I would assume that it is only right for him to receive the equity after the purchase price. He should pay you off for the balance of the loan (what you owe on the house) and the rest would be his.
If he would have financed it through a bank it would have worked this way. They get what they are owed and the rest is theres. That's the benefit of buying a home versus renting. You don't lose money you gain.
It is an investment.
It depends on the terms and conditions you establish between you and him as far as renting to own.
Are you selling him the house for face value or for what your loan amount is to the bank?
If you are selling the house for face value meaning, how ever much the house is worth that is what you are financing, then I would assume you would calculate the balance of the loan, what he has payed you, the pay off amount and his equity that he may have from the payments he has made.
Now, if you went into this only financing what you purchase the house for and he already had equity in the property, I would assume that it is only right for him to receive the equity after the purchase price. He should pay you off for the balance of the loan (what you owe on the house) and the rest would be his.
If he would have financed it through a bank it would have worked this way. They get what they are owed and the rest is theres. That's the benefit of buying a home versus renting. You don't lose money you gain.
It is an investment.
need more details
Price of house?
how many payments BF made?
value of house?
Price of house?
how many payments BF made?
value of house?
relationship issues always color transactions. what you need to do first, in my opinion, is to rectify the issues you're having in the relationship. it appears that he was in a business transaction that didn't work out, due in no part to him; you then stepped in and acquired the home in question, and for some reason you are holding it hostage. this is a rude little game, i think.
maybe i've read the situation incorrectly (i hope so), but it looks to me as if your boyfriend isn't going to be sticking around for long unless the two of you work this out.
maybe i've read the situation incorrectly (i hope so), but it looks to me as if your boyfriend isn't going to be sticking around for long unless the two of you work this out.
