Legal Question in Real Estate Law in Massachusetts

First, read your mortgage and loan carefully. There is a standard phrase which requires that if there is a change in ownership, then the entire amount of the mortgage becomes due and payable immediately.

Second, if your tenant is on the deed, they can (almost) never be evicted... even if she stops paying rent, damages the premises, or decides that she is going to sublease. You would have to get a court order to force the sale of the property.

Third, do you really want to put your property up as available collateral to secure a judgment in another motor vehicle accident?

Would it be a bad idea? Yes.

First, you need the consent of the lender to put her name on the home. They will want her to sign the note if they feel the mortgage is under water. So her credit will likely be impacted and if her credit rating is bad, they may refuse to put her on or require higher interest.

Likewise, if she is on the deed, she will not be required to pay rent, although she may need to pay half the mortgage, taxes etc. Moreover, her daughter's driving and potential liability could impact both you and her interest in the home at some time in the future.

It would be a bad decision for both of you.

If she feels she is entitled to something for the $10,000, then make an agreement to pay her if you sell the home or reduce her rent by $100 per month. I assume she benefited personally from the improvements as well or some were made for her benefit. If that is the case, some of the improvements may not be really for your or the home's benefit.

Again, the deed is a bad idea for both of you. Make some other arrangement if need be.

Yes. This is a bad idea. You should not put her name on the deed. If you want to give her some money, find another way to do it. Your flexibility in negotiating with the mortgage company will disappear. "Equity will not aid a volunteer."

If she wanted to improve your house that was her decision.

Foreclosure Attorney

Foreclosure Lawyer

Real Estate Attorney

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The previous answers are all good ones. The only thing I would add is that - if you do decide to compromise or settle this alleged claim for money - you must do so in writing. Create a paper trail and make sure that it is clear what her claim is and how exactly it will be settled. Do not hesitate to contact our office for help. 617-357-4898.