If my in-laws gave my ex-husband and I money to buy a house, are they entitled tomy share of the proceeds that I received when it was sold?

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If my in-laws gave my ex-husband and I money to buy a house, are they entitled tomy share of the proceeds that I received when it was sold?

My e- husband’s and my name were on the tile. My i-nlaws helped us purchase the home because they wanted to not because we asked for any help from them. At the time the house was sold they charged us $8,000 for some remodeling they said was done and they received it from the escrow company. The remainder was given 1/2 to my ex-husband and the other 1/2 to me. This happened 2 years ago. Now they have threatened to sue me for receiving that money. It was not a short sale or forclosure.

Asked on July 8, 2011 under Real Estate Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

So your ex in-laws (now out laws I would say) are trying to continue to torture you even though you and your ex have moved on.  How did they even get the money from the escrow company in the first place?  Did they pay for renovations and show the bills?  Was there an agreement in writing between you and them? Listen, when they gave you the money for the down payment did you have to submit something to the bank that said basically that it was a gift and not a loan to be re-paid?  Banks generally require those letters in order to evaluate your debt.  In other words, if it was a loan to be repaid then there would be less money to pay the mortgage and so they want a gift letter instead.  That helps you here. And are they going after their son?  No, I am sure.  Please seek legal help if the harassment continues.  Good luck.


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