Legal Question in Real Estate Law in California

My father did some type of reverse mortgage 4/2006 that payed him 5,000 each month He passed 3/2009 I was with him when he took the loan , The loan guy told us that after Dad passes we need to sell as soon as we can to repay the lenders. 6 day after Dad died we had a meeting with the guy that did the loan , he now tells us that it was ok for my brother to still live in Dads house and to keep cashing the 5,000 sent to Dad for up to 3 more years. I knew that was wrong . They would not tell me who the lenders where , so I could inform them that Dad (the only borrower) died. I just found out who the leander is / It was the loan guy the whole time and he is named The Assignment of Deed of Trust He put the house up for sale 550.000 way more than it's worth + Dad has a 1st mortgage of 350.000 . I would think the actions of them both are considered fraud .I know the house is gone but will he also get Dads life Ins. Can this be stopped ?

Asked on 8/25/09, 8:09 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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Yowch! Sounds like big-league fraud going on, at least upon first reading. I'd see a lawyer at once. Yes, it can be stopped (if indeed there is no innocent explanation after all), but you need to take quick and aggressive action.

Answered on 8/26/09, 12:36 am

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Terry A. Nelson Nelson & Lawless

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There be fraud here!! Run, don't walk, to an attorney's office for legal help in avoiding being sucked into illegal activity yourself. This situation needs to be handled honestly with reporting to the actual lender, and a deal worked out regarding refi or sale. Feel free to contact me if serious about doing so.

Answered on 8/26/09, 6:00 pm

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