If my parents are co-signers on our home loan and
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If my parents are co-signers on our home loan and
They gave us $20,000 as a gift to help us get on our feet. Now that our home
is up for sale, they are demanding the money back. They are not on the deed; they did co-sign on our mortgage loan in order to help us get a better interest
rate.
Asked on September 12, 2016 under Real Estate Law, Mississippi
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If it was a gift, not a loan, they are not entitled to it back; a gift, once given, cannot be ungiven and also comes with no obligation to repay. So legally, if it was a gift at the moment they gave it to you, not a loan (where the agreement was that you would repay it), you do not have to return the money, even if they later changed their minds about it.
The above said, if there is nothing in writing about the money and they should sue you for its return, claiming that it was a loan, not a gift, it will come down to their word against yours, and who a court funds more credible or believable; they could potentially win a lawsuit.
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