Legal rights on foreclosed home that I paid for and signed off on for family member who is just walking away now?
Question Details:
I bought a house for my son and his family with an agreement that he and his wife would pay me back. My son died in 2006 and I signed off on my lien so my daughter-in-law could get refinancing and now she's fallen behind and is losing the house so she's just moving out. Is there any way I can be recompensated for what she owes me?
Real Estate Law Answers
If you have a mortgage, effectively a second mortgage because you signed the paper to let the refinance in front of you (the document was probably called a "subordination"), then you will be named as a party to the foreclosure action, when it happens. You should have a lawyer represent you in that proceeding, and after the sale, get a deficiency judgment, for whatever part of your debt isn't paid by that point, along with the attorney's fees.
If you don't have a valid lien, you'll have to sue her, to establish your right to payment and get a judgment.
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