Legal Question in Real Estate Law in New Jersey
Equity Loan
Girlfriend and I have owned a house for 4 years. Last year or so, we took out a Home Equity Loan for 50k, 40k to her to pay off bills, which she had setup to directly go too credit cards for payoff, and 10k to me. If we seperate and sell the house, am I entitled to pay half of the 50k or just the 10k? Please advise
1 Answer from Attorneys
Re: Equity Loan
You do not say if there are any written agreements between you regarding your arrangements for the property? Most people do not have one, and this leads to much litigation if the parties split or the property is sold. I insist that my clients get it in writing before they buy the property or take mortgages ands equity loans. For example, the equity loan you took could be considered as a gift from you to her, and you could be on the hook for the entire loan repayment if the property is sold. Contact me directly if you need assistance.
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