My daughter is getting a divorce. Her husband's parents are suing her for money they gave to build a house. Her husband says that it was a loan. He didn't tell the bank that he owed any money when he was borrowing money for an addition to the house. Can he have it both ways?
Not really. What may happen is money is "gifted" to children so they have the down payment for their new home. If this was the case here, there should be a document in the mortgage loan file (ask the lender or current loan servicer) indicating there was a gift and there was no obligation to repay the money. That document could end the suit quickly.
If the money was otherwise received and the mortgage lender didn't question it, then the "loan" should have been reported on the original mortgage application as a debt. Was it shown as a loan there? If it wasn't, that is a matter between your daughter, ex-son in law, and the lender. The lender probably wouldn't do anything about it at this time, but both your daughter and her husband would have submitted a false loan application. There could be implications for both if push came to shove.
Lastly, was there a written agreement with the parents, and ask who entered into the agreement and then if oral agreements are acceptable in your state? These are some questions that should come up in this suit that has been filed, and which may help resolve it.
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Not really. What may happen is money is "gifted" to children so they have the down payment for their new home. If this was the case here, there should be a document in the 