Legal Question in Real Estate Law in Arizona
Property Dispute
My fiancee and I bought a home in 2003, I put 13K downpayment however my credit did not pass, so her father took out the loan in his name only with the understanding that as soon as my credit score increased, he would transfer the title into my name. I have solely paid the mortgage on this home as my fiancee only receives SSI income and it not sufficient to cover the mortgage. My fiancee and I are now separated 1 week and her father told me to my face that I lost out on the money and equity in the home since it doesn't have my name on paperwork. My fiancee still lives in the home with our 3 children and states that her father will be selling the home shortly and placing her and children in a different home. Do I have any recourse or did I just lose a ton of money?
2 Answers from Attorneys
Re: Property Dispute
This is an unfortunate situation which we see all too often due to the lack of a written agreement of the parties, which would easily prove the understanding of the parties. There is a way for you to get some evidence that would help you in your case, which is now your word against others, but it is tricky and must be done with legal counsel. See an attorney immediately.
In Arizona we have had an increase in home values of 40% in the last year or so, so unscrupulous people are highly tempted to get equity in houses in their name they did not pay for. Your benefactor will claim that your payments were rent for the use of the house, and that he bought it for the benefit of his daughter. Perhaps there was a loan officer who was witness to your understanding, or who suggested that this arrangement be made. The fact that you initially contracted for the home greatly helps your case in my opinion.
See an attorney immediately. You will not win without one.
Good luck,
James D. Jenkins
Re: Property Dispute
You have recourse, but you must take immediate legal action to "quiet title" and prevent him from selling the house, by filing a law suit and recording a "lis pendens" which will notify the title company that there is a dispute over title and that a sale should not take place.
I do not know how much you have invested in payments, but I am sure that you would be well advised to hire counsel and put a stop to his actions.