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Can anyone offer some real estate/legal advice on a sticky situation?
Sorry in advance if this gets a little long-winded...
H closed on his house in 2007 just about 2 weeks before we started dating (perfect timing huh). At the time, he was newly out of college and wasn't very well established yet so his dad "helped" him (I have my own ideas about just how much help it really was but that's another issue) with the purchase and gave him $5,000 for a down payment which he said was a gift.
Fast forward to present day where my H and I live in what SHOULD be our home, but instead it just feels like H and FIL's home since they legally own it together. His dad is on the mortgage, deed and title. My concern is that we are married and it should be our home and do I have any legal rights here. We've talked to one bank about a refi which would let his had sign off his rights and put my name on everything (essentially switching the interest from FIL to me). However, the bank suggested that it wasn't the best idea and a refi would also cost us between $1,700-$2,000.
We are planning to be in the house only a few more years; basically as soon as we can get out without being underwater so it's dependent on how the market plays out. Does anyone have any advice on this situation? Is it worth it to pay the money to refi to have my name on? Unfortunately, I don't really trust his dad because of some things that have happened in the past so I worry that if something were to happen (God forbid!) that I would be left with nothing. It wouldn't be that big of a deal except for the fact that H and I pay the mortgage payments every month with our JOINT money and we've also sunk A LOT of money into the house remodeling it. It really just bothers me too that it isn't "ours," even though my hubby says I shouldn't worry about it. Does anyone have advice on if there are any other options for us? What would you do in this situation?
Re: Can anyone offer some real estate/legal advice on a sticky situation?
Agh, that sounds terrible! I am going through a Real Estate class which is all about law so my advice has a little bit of weight but now much!!
Based on the current situation if your husband were to die his portion of the house would be left to you. You will want to check the deed of the house (if you want to get that detailed) it is with the bank that owns the house. There are two ways that a house owned by two people that aren't married can be deeded (I'm looking in the book).
Tenancy in Common & Right of Survivorship. If the house is deeded under Tenancy in Common it will be a headache but at least you will have some legal right to the house. If the house is deeded under Right of Survivorship and your husband died then your FIL would be the owner of the home.
Overall you are in a tough situation. My recommendation though is make sure that you have term life insurance on your husband (it is super cheap the younger you are) so that in the event he died you wouldn't be in a bad situation and then just stick it out until you can buy a home together and not be underwater on your home. If you husband hasn't already have him talk to his father about the whole
"thought it was you giving me money issue" and if all else fails just give your FIL the money at closing and be done with it.
Lesson to be learned and I'm sure you have, never borrow money from a family member because it taints the relationship no matter how much you think it wont. and never buy Real Estate with someone other than your spouse.
You just need to prepare and have FIL sign a Quit claim deed and deed your name onto the property and taking his off.
his name will still be on the mortgage but not title to the house.