Legal Question in Real Estate Law in California
My home is in a reverse mortage since 2008. The agent and broker who drew up the loan were charged and sentenced for loan fraud in2012. Would I or my family need to repay the loan under these conditions?
2 Answers from Attorneys
Probably. The question would revolve around whether the fraud also involved your loan. A finding that X committed a fraud upon Y does not automatically mean that X's dealings with Z are also fraudulent. Nor can one simply say "You're a crook, I don't have to repay you!" I suggest that you contact a real estate lawyer near you, and ask for a free initial consultation. Bring your loan papers and any information you have about the agent, broker and the lawsuit against them. More likely than not, your lawyer will tell you that your loan transaction doesn't seem to have any illegalities in it, or if it does, your rights are limited and don't extend to not repaying. However, who knows? The loan fraud may also involve your loan transaction, and you may have remedies which possibly (but not likely) could include being excused from repaying it. I think this is pretty unlikely, however.
Of course. Unless you somehow get the lender to modify the loan for some reason specific to you. Consult with an experienced real estate specializing in loan fraud issues. No one else will be of benefit to you.