Legal Question in Real Estate Law in Indiana

About 7 years ago, my husband signed onto a mortgage with his brother for a commercial building w/a flat. Fast forward to present time and his brother wanted to refinance the mortgage on the building.

The bank that was handling the refi sent us a letter with a quit claim deed written up by his brothers attorney, telling us that we needed to sign the quit claim deed so his brother could do the refi and remove us from the mortgage. The letter stated that he was approved for the refi and they just needed the signed quit claim deed. We signed it (I have dower rights) and sent it back.

Shortly there after (maybe 1-2 months), my husband talked to his brother and the bank that was handling the refi was taken over by the feds and all the original loan paperwork had to be rewritten and he had to start the whole refi process over, but, unknown to us, the quit claim deed was filed with the county. Now he (the brother) can't get approved for the refi and we are off the mortgage. If he goes belly up on the building, we are stuck with the note and no collateral with the building because we are off the mortgage.

Is this considered filing under false pretense? Do we have any ground to stand on? Is there anything we can do??


Asked on 3/07/11, 9:43 am

1 Answer from Attorneys

Please repost as the second part of your inquiry is unclear. I understand that he was turned down for the refi,and that the quitclaim was filed, but do not understand what you mean that you are off the mortgage?

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Answered on 3/08/11, 10:22 pm


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