My question involves a mortgage in the state of: New Jersey
My mother an I were tennants in common 50% each. She signed a mortgage agreement with my brother in law for x dollars. Than 7 days later transfered her interest to his spouse, my sister, and my two brothers. At the time the fair market value for the her interest she tranfered to my sister well exceeded the value of this mortgage. My sister initiated the transfer. She also put that she paid x dollars for the property. They did give my mother the first x dollars but not the second x dolars. When i discovered this later my mother confirmed only receiving the first money. Now my mother has passed away. I want to sell. My brothers sold out to me their interest. But now my sister is demanding the mortgage be repaid. I said first it has nothing to do with me because I did not sign or know of it. Howver, since I purchased my brothers interest I believe the mortgage is on that interest of the property. But I said to them, 7 days aftermaking the mortgage technically my mom repaid them by giving the property interst to my sister. I have now been in the home a year waiting to sell it and have paid all taxes and ins and cleared trees and brush due to a city citation on the house. It was costly. My sister says they do not have to reimburse me. She won't agre to sell. I offerd her a partition in kind agreement and they are still demanding the mortgage be repaid.
Question, should not the transfer of the property be compensation for the mortgage? My brother in law waited 8 years til after my mom died to say he was never paid. My mom told me she gave them her interest to repay them.
The deed states that the property is free and clear of any encumbrances, mortgages etc. My brothers were not aware of the mortgage nor was I when I purchased their interest. I may have to take this to court for partition and I want to know if I can insist that the " mortgage to my brother-in law be paid from his wifes proceeds.