Legal Question in Real Estate Law in Indiana

I bought a property that has a secret 2nd note from the seller. It was not disclosed to the 1st at closing and has not been recorded. I know this because the 1st has been sold a few times and a title search did not discover a 2nd. The 2nd note does not have a deed attached either. I have fallen behind on the 2nd payments.

What legal standing does the 2nd have? Can he forclose or just sue me as an individual without consideration for the property? Would a 1st holder fight a foreclosure on this type of instrument? Would a judge throw it out based on these facts?


Asked on 11/04/09, 3:04 pm

1 Answer from Attorneys

You probably commited mortgage fraud as did the seller. there was probably an affidavit signed at closing indicating that there were no other loans The first could sue for foreclosure immediately based on the misrepresentation. I dont know what the judge would do if the seller sought relief.

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Answered on 11/09/09, 8:41 pm


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