My question involves real estate located in the State of: AZ
Hi, thanks in advance for any help you can provide.
In 2008 my parents purchased a home for me on thier HELOC. Puchase price and owed amount were 130000.
It was agreed I would pay directly to the HELOC and there would be no additional charges other than the fees and interest on the loan from the bank.
I made every payment directly to the loan, and have paper trail of the payments. From Nov 08' to Oct 10' I payed aggressive extra principal to the loan, over 52k worth (a little more than 40% of the total loan.)
In Nov 10' we agreed to purchase the home the HELOC was drawn on, under new terms (Amortized 30 year mortgage for 195000 at 4%) and that they would carry the loan until my credit enabled me to purchase it from them. They took "ownership" of the first home and decided to rent it out.
I started making paymets to the new agreement in Nov 10'
We are still under this agreement.
The issue I am having (and I know I might be basically screwed, since nothing is in my name and it's basically my word against theirs) is that at 195000 I am paying what seems to be current market value for the home (Zillow says 180k).
The home is nice, has been upgraded substantially, but certainly not the 52k worth they are saying was negative equity that both homes accrued and canceled each other out.
The first home currently Zillows for about 100k.
Basically it feels like we paid 40% of thier HELOC for them and have nothing at all to show for it.
We didn't get appraisals in Nov 10', in retrospect I feel we definetly should have.
Is there any fair way to go about this for both of us?
Thanks again for any advice or help.

