Home was acquired by unmarried couple that were originally planning to marry. One party (hereinafter referred to "First Party") contributed $200,000.00 cash, plus paid $3,000.00 earnest money and closing costs. First Party also paid for approximately $20,000.00 in upgrades within the first several months of acquiring property. Other party (hereinafter referred to "Second Party") made no monetary contributions to the property. Purchase price was $360,000.00.
First Party was moving from Richardson, Texas and sold her home there. Second Party was still living in Rio Rancho, New Mexico and was trying to sell his home there. Couple had agreed they would both sell their homes and move to the Kansas City, Kansas area upon retirement as Second Party had two daughters and grandchildren that lived there. It was also verbally agreed through many conversations that they would combine their social security checks to pay for basic living expenses; i.e. utilities, food. There was no plan for any mortgage payment to be made out of the social security checks. First Party retired in April 2016. Second Party retired in December 2016. Second Party wanted house purchased and set up prior to his moving from New Mexico and wanted to start looking for new home in Kansas City area in April 2016. Home was purchase first part of June 2016. At that time a joint checking account was set up for both of us to deposit our Social Security checks to be deposited into. (The Second Party had approximately $3,000 additional monthly income over and above his social security check from several retirement accounts, etc.)
When purchase was made of the current home, second party had not yet sold his home in Rio Rancho, New Mexico, so could not quality for the $160,000 loan amount needed, plus the loan he still had on his home in Rio Rancho, so both First Party and Second Party had to sign on the new $160,000.00 loan. The Second Party agreed he would make the payments for this loan.
When Second Party sold his home in Rio Rancho, he actually had to pay a very small amount in order to close. He stayed in his house there until closing in December of that year and moved into our home in January, 2017. Unfortunately, and NOT AGREED TO BY THE FIRST PARTY, the Second Party had made arrangement with our bank to have the mortgage payment automatically withdrawn each month out of our joint checking account. First Party was very upset with this as she felt this was totally unfair since she had already put $200,000 cash, plus $3,000 earnest money, plus paid closing costs, plus paid approximately $20,000 for upgrades out of her personal funds. First Party's sole income was her social security check, while Second Party was receiving social security check, plus an additional approximate amount of $3,000 each month which was not being shared by the parties.
At this time, First Party wants the property to be sold. Second Party will not agree to sell the property and does not have the funds to "buy out" the First Party.
Note: Second Party did not pay taxes on his total wages, etc. from 2019 and had a tax bill of approximately $20,000. He did not have the funds to pay this so got an equity lien on the property in July, 2018 for four years to pay for the IRS taxes, plus additional funds to pay off credit cards. A Two Party Agreement was executed, notarized and filed with the Deed Records stating he would be solely responsible for this loan and the First Party was only executing the documents to secure the loan and not have any responsibility for repayment of the loan. It was also stated upon repayment and closing of the equity loan, if for any reason the parties agree to sell the residence prior to the final payment of the existing first lien, he would agree to repay the original down payment and earnest money of $203,000 and both parties would split the balance after all expenses for closing had been paid.
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