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  1. #1
    Join Date
    May 2012
    Posts
    4

    Default Private Mortgage on Joint Owned Property

    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.

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,006

    Default Re: Private Mortgage on Joint Owned Property

    If you are stating that one of the brothers who conveyed you the property was the owner of the mortgage, and when he conveyed to you his interest he did so through a warranty deed that conveyed that interest free and clear of any encumbrances, then it would ordinarily follow that he was supposed to release his lien in association with that sale. You mention multiple brothers - is one of the brothers who conveyed his interest to you the one who holds the mortgage?

  3. #3
    Join Date
    May 2012
    Posts
    4

    Default Re: Private Mortgage on Joint Owned Property

    To further clarify,

    The mortgage was between a brother -in law and my mother. Then 7 days after this mortgage was signed my mother conveyed her interest to my sisters and natural brothers. This sister is married to the brother in law who had the mortgage. When I discovered this I had already bought out my two natural brothers interest. I did this for expediency to be able to handle the buisness of the house sale. I paid them a fair value. But now my sister and brother in law springs this eight year old mortgage paper they had between my mother. She had told me she had settled her buisness with them when she conveyed her interest over to my sister. Its a mess but I have to get things straight to sell this place and get on with my life. I asked for a response to a second correspondanse by the 15 of june but nothing. I am preparing a suit to either partition then sell or force sell on the whole property. Just trying to gather as much information to try and present a resonable case and move this thing on.

    P.S. The deed that conveyed to my natural sister(the brother in laws wife) and brothers had the promise from grantor that the property was free of encombrances.

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