[cswaim]

13 years ago my dad paid for my first house and I (begrudgingly) entered into an oral agreement to pay him back. He insisted on cash payments and would not memorialize the agreement terms nor give receipts for the payments. The initial amount was $72k and the property was listed in my name without lien.

I had a skethcy payment history, but eventually made good on the loan and completed payments with a cash lump sum in July. It should be noted he was a shady character with IRS issues and alcohlism.

Last month he died. His surviving spouse claims that she has no record or knowledge of the loan being paid off and is sending certified mail demanding payment of a $42k balance. I never entered into conversatiosn or an agreement with her at any time, though she claims the loan was made between her and my dad, and me.

As far as I was concerned, the loan was paid in the first place, but can she make a case of this? Would an attorney actually take this on and could it go to court? I assume the burden of proff would be on her to prove there was a contract in the first place that included her... how could she do that?

[Mr. Knowitall]

It sounds like it would be difficult for her to prove the amount of any outstanding obligation, given that there is no documentation of the loan. You should try to refresh your "sketchy payment history", just in case she tries to make a claim.

[cswaim]

Thanks for weighing in...

A follow-up question:

When my entire understanding had been with my father, is there a precedent or something that gives her a leg to stand on to claim the loan was joint?

I could understand a claim for the estate (which by the way, he died intestate) - but she is claiming to be a co-creditor...

[Mr. Knowitall]

I'm not sure that it matters whether she came into the contract at its outset, or if she inherited your obligation to your father as an asset of his estate.