Legal Question in Real Estate Law in Iowa

I did not get a clear answer b4... it may be that I did not explain my situation as well as I should have.

I refinanced my home with a bank...I had a private contract with owner prior to getting my bank loan. I lost my job and found myself in foreclosure....the law suit has me and the previous owner on them... this is due to the previous owner never released his lien...so in reality the bank is in second lien position...I am in the middle.. The bank is not working with me to do a modification....even though I got a different job but less pay... do I have any legal ground to file against the bank... are they not suppose to make sure title is secure.... I could not sell the home because of the other lien... do the have a legal right to foreclose.. I live in Iowa.....I hope Im being clear enough with my issue.

Thank you in advance for your response.


Asked on 5/31/11, 3:15 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

Without knowing what the details of your contract with this other person it is impossible to state with precision what the bank's position is. If you refinanced or got a mortgage without disclosing the fact that there is a prior lien on the property that you were aware of and that a title search did not disclose, your problems may be a lot bigger because you've committed mortgage fraud. In addition, I would question whether that's a valid lien if it was not of record.

My guess is that if the contract you entered into is not of record the bank is treating it as nonexistent. In any event, the things you're alleging are in the nature of defenses. I suggest you hire yourself a lawyer to defend this matter or at least determin whether your claims have merit.

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Answered on 6/02/11, 8:55 pm


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