QUESTION
Could you shed some light on this for us so we know what our rights are regarding our home payment increase?
Asked on Feb 18th, 2014 on Estate Planning - Oregon
More details to this question:
My wife and I bought a home from her brother (he's the banker in this deal). We negotiated a sale of $200,000, $20,000 down, $700.00 per month, no interest for the life of the loan (it's all in writing). Today after almost 8 years he comes and say he's going up to $800.00 because the bank can do whatever it wants and he's putting the house in a trust, although we did it legal in the county courthouse. The deed is in our name but he's the lien holder. Thank you.
11 ANSWERS
Probate Attorney serving New Orleans, LA
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James G. Maguire
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Unless the transfer documents allow him to change the terms of the mortgage (that would be very unusual), he cannot increase the payments just on his own. He is bound by the terms of the sale just like you are.
Answered on Mar 03rd, 2014 at 3:48 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Nobody can answer you without having a chance to review the documents in question. This would normally not be a common type of provision in mortgage documents.
Answered on Feb 28th, 2014 at 5:26 AM
Just because someone is a lender doesn't give them rights to renegotiate. Keep paying the $700.
Answered on Feb 28th, 2014 at 5:26 AM
Edwin K. Niles
1. Unless it's in the note that you signed, I don?t see how he can arbitrarily increase the payment. 2. How can he put the property in a trust? You need to have a lawyer review all your papers ASAP.
Answered on Feb 28th, 2014 at 5:26 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Suggest you obtain the services of a real estate lawyer to assist you in putting your brother in law in his place.
Answered on Feb 27th, 2014 at 8:43 PM
3 Awards
You need an attorney to review all of your paperwork. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Feb 27th, 2014 at 8:28 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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You need to take the agreement to a local attorney and have it reviewed. Only somebody looking at the terms of the agreement can give you a valid answer.
Answered on Feb 27th, 2014 at 8:14 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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His premise, that "the bank can do whatever it wants" is false. He can put his note and trust deed into a trust, but the house is yours and not his, and he is not entitled to extra money. By the way, for income tax purposes, you are allowed to deduct part of your payments as interest.
Answered on Feb 26th, 2014 at 5:46 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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The written terms of the loan will determine if he can unilaterally increase the amount of the monthly payment. If the loan was written as a demand loan then he could call the loan. Perhaps you should look to a traditional lender and refinance the outstanding balance of the loan.
Answered on Feb 26th, 2014 at 5:45 PM
Thomas Edward Gates
He cannot change the terms of the sale. He cannot place the property in Trust either. Contact an attorney to assist you.
Answered on Feb 26th, 2014 at 5:44 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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No, he can't unilaterally change the terms of a contract, unless there is a specific written term in the contract saying that he can. He can transfer his security interest in the property to his trust, but this does not change the underlying ownership of the property unless you sign a deed transferring your interest. So, this is your home and you paid $200 grand for it. I would seriously consider spending a few hundred to speak with a lawyer in your town about this. That way, you will be prepared to protect your interest if your brother-in-law tries more shenanigans.
Answered on Feb 26th, 2014 at 5:37 PM