[WSBARP] promissory note or gift

[Kimberly Hammit]

Per the suggestion below, I'm sorry - I just don't understand this.  BF is
purchasing solely in his name, she is nowhere on title or loan.  What is
the consideration for the $20K?  The agreement to pay rent and for her to
have the benefit of living there is a rental agreement (consideration being
rent paid = place to live).  I'm also confused about the taxes and
insurance and how they are relevant to the rental agreement?  I thought of
structuring it as sort of an "overpayment" of rent payback (she is paying
half the mortgage but they value the rent as less than that so she's
overpaying and he has to pay her back?)  I don't know, I don't want to risk
any smell of fraud but I'm not sure how to do this without.  It seems to be
pretty popular to have "gifted" money for down payment with the
understanding that it be paid back.  I just don't quite understand the
suggestion below if you could clarify?

"Is house being purchased in bf?s name only? If so, could you do a K where
she agrees to pay rent, and he agrees that she can live there and that he
will pay her the $ if she ceases to pay rent within the next X years. Fold
taxes and insurance in there somewhere, in case they cease to be paid
through the mortgage. "


Rebecca K. Wiess

421 24th Avenue East

Seattle, WA  98112

Phone 206 329-6638

rwiess at foxinternet.net
Regards,

Kimberly S. Hammit
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