Is personal lien on homestead enforceable?

Boyfriend fronts down payment on my house ($44k 6 years ago). Just before closing, he asked me to sign “Equity Contribution Agreement”. Then 4 years later, boyfriend records the Agreement after I break up with him. Agreement says I am to pay back debt when title to house transfers, whether by sale, foreclosure, etc. I owe $83k more than home is worth, not including his $44k. Can I avoid lien? Not that this matters, but ex is extremely wealthy and I am a single mom with no assets.

Asked on August 30, 2011 Arizona

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the money that was loaned to you by your former boyfriend was part of the purchase of the home by you and the loan is secured by a the "equity contribution agreement" recorded on your home, if you lose the home in a foreclosure (assuming you are willing to let it go that route), there is a possibility that if your state has anti-deficiency legislation for purchase money loans, your former boyfriend's recorded lien on your home might be wiped out and he might not have any recourse against you for its repayment.

Whether or not this would be the result is best analyzed by a real estate attorney in your state of residence.

Good luck.


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