Skip to main content

Deed of acknowledgement of debt

Hi all, we had an uncle help us out buy a house a few months ago by lending some money to help with the deposit. One of the conditions from the bank to allow the loan was that all parties (Me, my wife, and her uncle(lender)) sign a "Deed of acknowledgement of debt". This document was provided by the bank and we just had to sign them. Its pretty short, and below is a copy/paste of what the "Deed of acknowledgement of debt" contains.

The lender has advanced to the borrower/s the sum of $xxxx. Some of the advance will be used by the borrower/s to purchase a property.

This is a record that the borrower/s acknowledges this advance. The borrower/s agree to repay the advance if the property is sold.

The lender makes this advance interest free with no repayments and will not be pacing a mortgage against the title.

Fast forward 2 months later, we are now living in this new house, the uncle now comes with a new contract for us to sign...which effectively states (amongst other demands..e.g. we can no longer take out any other loan without his approval), that within a year, we will start paying him back his money. His contract will force us to give him monthly spending budges, so he can use this to decide how much he would take from us as repayments...We have not signed anything here yet, as we told him we would need some legal help before signing anything.

We have always acknowledged that his money was a loan that would at some point have to be paid...but we were agreeing more with the Banks Deed of acknowledgement of debt, that this can only be replayed once we sell the house in a few years, which we have every intention of doing.

Question 1: Is the uncle's new contract legal? the Deed of acknowledgement of debt clearly says that there will be no repayments nor second mortgage.

Question 2: If we sign his new contract and start paying him money, will this break the Deed of acknowledgement of debt, and thus...would this cause the bank to default our home loan?

​

Thank you!

submitted by /u/mactiniz
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/ut0i9t/deed_of_acknowledgement_of_debt/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear
1 comment
Read more

Fast Rising HOA Fees on NYC Condo, No Budget Provided

My wife and I are first time homeowners and could use some advice on a situation we've been having with our management company and Board. We bought a condo in Brooklyn two years ago, and since then our HOA fees have climbed dramatically. In August of last year, our fees were increased by ~30% and just yesterday we received notice that this new figure would be increased by 16% as of June 1st. The by-laws for our building state that ten days before such a change goes into effect, the Board must provide unit owners with the itemized budget upon which the new numbers were based. This didn't happen last year, and when I asked the management company about it, they just kept vaguely insisting the Board had done due diligence. After I kept pressing, they finally sent a budget that was several years old, so obviously not the one that the new numbers were based on. When I asked the management company for contact information for the Board to get further clarification, I was told that th
Post a Comment
Read more

How to create fidelity investments current bank statement for lender during escrow

I transferred a certain amount to my bank account to complete the minimum down payment required. The bank wants a current statement of the transaction. Unfortunately, fidelity only does quarterly statements so a December statement is not available and we are due to close next week. I called fidelity and they they can only provide a letter but the bank said that won’t suffice. Any way I can find or make one of my own that has my account number/name along with all the recent month’s activities? submitted by /u/bodaciousbeans [link] [comments] source https://www.reddit.com/r/RealEstate/comments/zmnnqo/how_to_create_fidelity_investments_current_bank/
Post a Comment
Read more