If I used a friends credit to buy a house, but I lived there and made all payments, what are my rights?

Question

My friend has not paid a dime or lived there and it's been over a year. She refuses to put us on title.

You guys should know that she signed a grant deed puting us on title, but the county recorder's office made a mistake and did not record it properly. Now that she knows this, she is asking for more money. Can the document she signed, be used in court to show intent?

Answer 1

Do you have a contract??? If you don't, either get one or move.

She currently owns the property and you have no rights. You may loose money, but it's better to loose a year's worth than 5 or 10.

Answer 2

If your friends on title, then you need something in writing that states that your friend has no interest in this property and it is yours (like a quit claim deed). If you do this and the loan has a "due on sale" provision, then the lender will want all the loan to be paid in full. Therefore I suggest the following:

Have your friend transfer the property into a trust and then assign this trust to you. You could also create a lease purchase option and use a date of when you first purchased the house. Also give yourself some time to fix your credit and acquire funding for the property.

If your friend is not willing to work with you, get a lawyer and see what your options are. As it is, you have no leg to stand on and your friend can turn around and sell this place under you and kick you out within 30 days (because I assume you don't even have a lease).

Regards

Update:
How can she sign over a grant deed when there is a trust deed or mortgage contract associated to the property? I bet that's why it couldn't be recorded. She would need to have given you a warranty deed in such a way (like through a trust) in which the lender could not find out.

Anyway, to answer your question, you can use that as proof that property was conveyed to you. However, if she were to sell the property and the new owners were able to record their deed, you're SOL. The person who records the deed first has rights over ownership. At this point, I would talk to a real estate lawyer because you're involved in two issues:
1. Rightful ownership of real property
2. A possibility of the lender calling the note based on their "due on sale" clause they probably have.

I can't explain the world of hurt you're in right now. Even if you don't pay the loan, you're out all the money you spent and either she will sell the place or the bank will foreclose on you. To top it off, if the bank finds out that you hold title, they will most likely call the loan.

Good luck to you and get a real estate lawyer first thing Monday morning.

Answer 3

What do you mean that you used a friend's credit to buy a home?? Did they cosign on your mortgage? If so, your name is already on the deed.

Or did they buy the house and then allow you to live there for the mortgage payments? If so, you are a tenant and have no right of title to the property. You'll have to purchase the house from your friend (assuming that she's willing to sell it to you) and get your own mortgage.

Having a witness to any other deal that you may have made or thought you were making is worthless. Real estate transactions are only valid if in writing. Oral agreements are not enforceable in a court of law with the general exception of leases of less than one year's duration.

You are a tenant. If you don't have a lease, you can be put out of the property with 30 days notice.

Answer 4

Did you put a down payment? if not, and you don't have any written agreement that you will split the home equity when you sell or anything to that effect in writing, you are her renter. you have NO rights to this house. If you put money down and can prove that you did, you might be able to take her to court to get that money back, but that is also iffy and will cost you money to do all the legal stuff. Good luck.

Answer 5

Depends. It sounds as though she is leasing the house to you, especially if you are not on the title.

If you are on the title then the question is - how is the ownership structured? You could have someone removed from the title (with your friend's consent only) which would constitute a change in ownership. There's a bit of work involved in any case.

Answer 6

Move and let her have it!!! Don't pay another dime. Then go talk to a lawyer but I doubt there is anything you can do if you didn't have it in writing. If she can't afford the house payments let her go down in a flaming fire ball and lose her credit and the house. Wouldn't that be justice!!!

Answer 7

It's her house if it's in her name. You have agreed to pay to live there. Essentially you are a renter. You have not right to own the home. Only sale of the home to you will do that. Stop making the payments, and it doesn't do anything to your credit either.

Answer 8

I think you made a mistake and should cut your losses. You are only a renter at this point. Unless you have a witness that knows the deal.

Answer 9

If the name of the owner of the house is resistered is of your freind's then its his. No one cares who made the payment.

However if you have all the receipts you have right to go to court and fight for your right.

Answer 10

IF YOU KEPT ALL THE RECEIT'S YOU MAY HAVE A LEGAL LEG TO STAND ON, IF NOT THEN LOOK AT THE LANDLORD TENENT LAW IN YOUR STATE AS YOU ARE NOTHING MORE THAN A RENTER. OUR MISTAKE FOR PUTTING YOUR "FRIENDS" NAME ON THE TITLE. YOU JSUT GAVE AWAY ALL THAT YOU PAID ON IT.