@AndrewA87
You need to sit down with a lawyer (your own lawyer, not your son's lawyer) and figure out what's going on. I don't see how the closing attorney or title company can direct any payment to you, or issue a 1099-S to you, if you are not a part owner of the house. That provision in the divorce agreement might not even be legally valid.
And as others have said, a gift doesn't get repaid.
