The co-signer moved out about a home a year and a half into the loan, its been almost 7 years now since they moved out leaving me a note that she was not going to make another payment on the house.
Now six and a half years later I asked her to sign over the title to me , and she wants to be compensated for the money she put into it.
What can I do ? I have the payment coming out of my acct and have for the last almost 7 years.
With no agreement in place, the other person can go after half the equity in the house. In my opinion, wanting their down payment back seems reasonable.
Well, it sounds like you have two options:
1) Continue to jointly own the house.
2) Compensate her for her equity and get the title transferred.
I hate to tell you this, but she is entitled to half of the equity regardless of how much she paid into it. That said, she is still on the hook equally for the loan amount, but it won't do you any good if she is not willing to pay.
Also, option 2 probably isn't a good deal for your co-signer as she would still be liable for the entire loan loan (just as you are) regardless of the title.
