Legal Question in Real Estate Law in Indiana

Real estate law help

We sold our home in Aug 2004 to a man...we did a 2nd mortgage in writing only so he could do a 90/10 loan, but the selling price was only as much as the 90 loan. Today we got a letter saying we are listed as defendants in a foreclosure hearing. We do not own any part of the house; it is not on our credit reports or anywhere. Do we just need to state that and get the info to the attorney and the clerk of our county to be cleared? He had a set time to refi and get rid of the 2nd mtge, and he must have. But why would the courts still think we are liable? Please help!!!!!!!!


Asked on 2/23/07, 6:33 pm

2 Answers from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Real estate law help

Anyone who has a junior mortgage (or other interest) on a property which is being foreclosed upon by the senior mortgage holder must be named and served as a defendant so that the senior mortgage holder can take clear title after the foreclosure. Take the papers you received to a lawyer to see if that's all there is to it. If that is all, then it means the senior mortgage holder will get a judgment wiping out your mortgage. And if you have already been paid full price for the house, you have nothing to lose. So far, so good. But from your question, it appears that you helped the buyer falsely qualify for a 90/10 loan. (Stating that you have a mortgage or an inflated purchase price could be fraud or forgery. If the mortgage company or the U.S. Attorney ever discover this, you could be charged with a criminal offense, which is separate from the foreclosure action. Again, you should cheerfully pay a local attorney to review this matter with you in person. Good luck.

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Answered on 2/23/07, 7:37 pm
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: Real estate law help

You were named in the suit because you are a second mortgage holder. You wont have liability, rather the first mortgage holder named you and is asserting that its' rights are superior to yours.

You should hire your own attorney to review your paperwork and confirm the situation.

Good luck.

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Answered on 2/23/07, 10:06 pm


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