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How much compensation to give for use of name on house for 3

Posted on: 30th Mar, 2008 01:15 pm
my husband and i used our money to buy house we are living in. my daughter used her name and her credit. she lived here for 3 1/2 years with her young daughter. we have been here a total of 4 1/2 years. my husband and i paid for everything. down payment, closing costs, repairs, remodeling, etc. while my daughter lived here we split the monthly mortgage payment, and utilities. every year we split the income tax return acquired from interest until 2007. she kept all of it eventhough she did not pay any of the interest. we refinanced after 2 years and each got $1000.00 in cash. we also each got $850.00 from overpayment of escrow which turned out to be a mistake on mortgage companies part and now my husband and i are responsible for paying that back as well. we are now going to have daughter sign over title to us and refinance as our credit is at a point we can do that. my daughter feels she should get reimbursed for half of mortgage she paid while she lived here and for use of her name. she claims paying half of mortgage is not cost of living but investment in house. i am embarrassed to tell anyone my own daughter would feel this way. originally we were going to wait for a better time to do this. however her paramour has threatened twice now to convince my daughter to just take home. therefore we have as $2300.00 prepayment penalty as well. this would dissolve in november. my husband and i feel we need to just pay that instead of waiting as we no longer trust our daughter in not doing what her paramour has threatened. the only reason we are reluctant to give her alot of money is we are fearful of what will happen to it as we have many doubts about her paramour. we have been approved for refinance with cash back of $3500.00. she is to get $1750.00 and we are getting $1750.00. our $1750.00 is going to fix the garage door and pave the driveway prior to closing so that it is appraised at appropriate amount. we are borrowing that money to do this until closing. my husband and i totally furnished house as well as bought her daughter's bedroom furniture, and paid $500.00 of her bedroom furniture. we also helped to support her daughter in way of shoes, coat, clothes, etc. what do you feel is a fair amount of money to give her? does paying half of cost of living, (ie, half of mortgage payment and utilities while residing in home)constitute investment and how much money is fair to give her? please keep in mind that we do not mind helping our child however at this time we have reservations due to her paramour. thank you for your time
denise mack
Hi,

Welcome to the forum.

Are you saying that your daughter is the only one who is on the title of the property? If so then she can rightly claim 50% of the equity of the property from you to quitclaim the property to you and you have also said that you don't have any problem to pay your daughter. So I don't think that you should fear her "paramour".

If you can, just refinance the mortgage on your name and ask her to quitclaim the property to you ASAP. Because if you wait then the equity will increase and you will then have to pay her more.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 30th Mar, 2008 11:19 pm
Hi,

There has been a reply given to your post by one of the members at http://www.mortgagefit.com/quitclaim-refinance/compensation.html#48013 . please have a look at it.

Take Care
Posted on: 31st Mar, 2008 05:04 am
thank you larry for your response. it put my mind at ease that we did the right thing. we had her sign a quit claim deed on the 27th of march. we sign refinance papers today. her paramour is brainwashing her at this point. she wanted us to sign an affidavit in front of a notary that we would give her $10,000 before she would sign the quit claim. keep in mind that we have given her $4000.00 thus far and that does not include the thousands of dollars we have spent on her just to help her out. we refused and told her she could just have the house but she did not want it. again, her investments are minimal compared to ours and she needed a place to live when we aquired the home. she has paid nothing except her cost of living while she lived here. she didn't even clean while here. my husband and i have remodeled alot of the house so we would have equity. my question is more one of morality then it is of legality. normally i do not have a problem giving to my children. my husband and i have five of them. this imparticular daughter is involved with a con man. he does not work, just got out of jail, has 5 children with 5 different women, and much more. it is jerry springer stuff. he has even prostituted himself to men for drugs. he has threatened my husband and i and has been convicted of harrassment towards us. my daughter is not herself and does not even speak to me at this point as this man has convinced her that i owe her alot of money. i am looking for a way to put our investments on paper and compensate accordingly. if someone would have told me that my daughter would be involved with such a character and would actually charge me for using her name i would have never believed them. she has disassociated herself from her entire family and life long friends. is there anyway this can be done. maybe with percentages and amount of equity. i just want to do the right thing morally and unfortunately since this is my daughter, my emotion attachment hinders my ability to think this out myself. thanks so much for your help. denise
Posted on: 31st Mar, 2008 05:46 am
Hi Denise,

Welcome back. I am extremely sorry to hear about you daughter.

As you have said that she has signed a quitclaim deed, have to notarize and recorded the deed in the county recorder's office? If not then do it ASAP to make it valid. After that your daughter will not have any claim on the property. You have already refinanced the mortgaged o your name. So that is very good. So if you wish you can decide not to give any money to your daughter.

Best of luck,
Larry.
Posted on: 01st Apr, 2008 05:40 am
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