If my parents are co-signers on our home loan and

They gave us $20,000 as a gift to help us get on our feet. Now that our home

is up for sale, they are demanding the money back. They are not on the deed; they did co-sign on our mortgage loan in order to help us get a better interest

rate.

Asked on September 12, 2016 under Real Estate Law, Mississippi

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If it was a gift, not a loan, they are not entitled to it back; a gift, once given, cannot be ungiven and also comes with no obligation to repay. So legally, if it was a gift at the moment they gave it to you, not a loan (where the agreement was that you would repay it), you do not have to return the money, even if they later changed their minds about it.
The above said, if there is nothing in writing about the money and they should sue you for its return, claiming that it was a loan, not a gift, it will come down to their word against yours, and who a court funds more credible or believable; they could potentially win a lawsuit.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.