A family friend signed a house loan for us now we want to sell the house but he wants 50% of the money.

Question

I want to note i am not a legal citizen of the United States that is why our family friend offered to get us a house. We have lived in it for more than two years. We have had some problems with work and we decided one of our options was to move states. I let the friend know we were looking to sell and we would give him what they would tax us so it wouldn’t affect his credit. An inspector came to the house to give me the estimate of how much it was worth, once they told me I decided i didn't want to sell it after all since my kids didn’t want to move. But my friend decided to go ahead and work with a realtor behind my back now he and his wife said that they wanted 50% of the earnings. They started the process of selling the house and it has a lock on it. I know legally the house is under his name but I've made all the payments and work on house improvements.

James L. Arrasmith · Answer

I understand this is a difficult and stressful situation. Based on the information you've provided, here are a few important points to consider: 
 
1. Legal ownership: If the house is legally under your friend's name, they are the legal owner of the property, even if you have made all the payments and improvements. 
 
2. Verbal agreements: Any verbal agreements between you and your friend regarding the ownership and sale of the house may be difficult to enforce legally, especially if there is no written contract. 
 
3. Selling the house: As the legal owner, your friend has the right to sell the house, even if it goes against your wishes. The lock on the house may be a way to ensure that the property is secure and ready for sale. 
 
4. Profit distribution: The distribution of profits from the sale of the house will likely depend on any written agreements between you and your friend, as well as the specific circumstances of your arrangement. 
 
Given the complexity of your situation, it is highly recommended that you seek legal advice from a qualified real estate attorney who can review the details of your case and advise you on your rights and options. They can help you understand the legal implications of your arrangement with your friend and guide you through the process of protecting your interests. 
 
Additionally, if you believe that your friend has acted in bad faith or has taken advantage of your situation, you may want to consider reporting the matter to the appropriate authorities or seeking mediation to resolve the dispute. A legal professional can advise you on the best course of action based on your specific circumstances.

Anthony M. Avery · Answer

You will have to hire a TN attorney now to sue for a Resulting Trust, Notice Lis Pendens, and a TRO in Chancery.    A Bond will have to be made to stop the sale pending litigation.   You will have to put on evidence of your payments.   It will be difficult and expensive.   Otherwise you lose everything.

Q: A family friend signed a house loan for us now we want to sell the house but he wants 50% of the money.