How to Handle Loan Repayment with Ex Son/Daughter Inlaw

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“My son and daughter-in-law wanted to purchase a mobile home about 10 years ago. Their credit was bad, so my husband and myself took out the loan to buy it. They are now divorced. We pay the taxes, insurance and all repairs. The loan payment amount is $ 333.24 monthly. I make a payment each month for $335.00. She sends me a check for $333.00. I am losing money on this. What are my options? Our 3 grandchildren live with her.”

[NOTE: Articles and answers on DearEsq., while written and published by lawyers, do not constitute legal advice, and no attorney-client relationship is formed by your reading of this information. You should always consult with an attorney for any legal situations.]

If you’re the legal owner (on the title), you could start unlawful detainer proceedings and evict them. If you are not the owner, you could try subtlely to pressure them to get financing in their own names. Maybe tell them that you want to sell the property unless you can get your money out and your name ff the loan. You could ask her to pay the actual amount so you’re not losing money each month. You could stop making payments and allow the property to go into foreclosure with the hope that you will pay it off later. Then teh bank will do the dirty work of evicting them, spoiling your credit in the process.

I know the $1.76 shortfall each month is a tough price to pay as a grandparent to keep your grandchildren with a roof over their heads, nearby enough for you to be able to see them. And sure, if you move D-I-L out of there, she’ll make it tougher for you to see them . . . but afterall, it’s not just the $1.76 but the principle! Actually you are probably building some equity if you are the record owner, so maybe you are also paying yourself something.

My suggestion if the money is the real issue would be let her know the real amounts and see if she wants to pay all the costs associated with the property or set a time when she will leave. Otherwise communicate your concern without threat and see if you can come to an understanding about the finances.

NB: For those reading this answer, try to never obligate yourself to a lending agency without gaining an enforceable ownership interest in the thing being purchased. I know we do things for “love” but when you are doing someone a favor, there is an opportunity to also teach a lesson about responsibility and accountability while covering your own behind. This all started with “bad credit” in the first place.



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Author: House Attorney

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