I let my home go into foreclosure because it was ove $200,000 underwater. My Grandmother bought a house in her name for me, I paid all the m...

Question

I let my home go into foreclosure because it was ove $200,000 underwater. My Grandmother bought a house in her name for me, I paid all the money and am paying the mortgage each month and living in the house. How do I make sure that when she passes on that I will keep this house and have it in my name?

Answer

You need to talk to an estate planning attorney. Right now, there is no guarantee that you will get the house when she passes.

Answer

If you paid 100% of the down payment with your money, and have proof of that, you are the equitable or beneficial owner of the new house. The house is yours under a principle called "purchase-money resulting trust." Your grandmother, as holder of record title, is an involuntary trustee, holding the title in trust for you. Upon your demand, she is obliged to convey legal title to you.

Of course, you may not want to sue your grandmother, who has apparently been exceptionally kind to you. However, it certainly appears that you have a perfect right to demand, in court, that title be placed in your name.

You can do this anytime, even after she passes away, but if it's necessary to sue to assert your rights, better sooner than later.