Owner-1 and Owner-2 are tenants-in-common. Owner-1 forged Owner-2's signature on a Power of Attorney and refinanced the property. Owner-1 was convicted and imprisoned, and defaulted on the new mortgage. Bank files for foreclosure against both Owners 1 & 2. Court eventually dismissed case against Owner -2, but during the litigation over 11 years, the Court granted the Bank equitable liens against the property. Owner-1 never appeared or answered complaint. Bank never moved for default judgment against Owner-1. What can the Bank do now since the Court dismissed the foreclosure complaint against Owner-2, and since the Court would likely rule that the case against Owner-1 has been abandoned? I'm Owner-2 and represented myself during the litigation.
1 Answer from Attorneys
Yes I think the bank got the short end of the stick here and they don't have a lot of options. But they'll keep pushing regardless; they'll just go back to square one and start all over again. I wonder who notarized the forged signature on the Power of Attorney. Surely Owner 1 didn't go to jail for that reason; there must be some other reason. I think you're also getting a bad deal as they're nothing you can do with the property, unless you intend to live there rent free for years and years until the bank eventually gets the property back. Tough situation; good job representing yourself for 11 years. Was there cash taken out in the refinance?