Legal Question in Real Estate Law in Iowa

My parents consigned for an investment property loan. The original bank never put a lien on their home. The original bank went under, the new bank that took over the notes, placed a lien on my parents home. Then they forced us to sell the property as they no longer wanted to carry real estate loans. We had a limited time to sell property, when it sold, it was for less than owed. The bank then told us we owed them the deficit of the principal plus $20,000.00 in interest @ 9.9 percent interest for a total of over $56,000.00. They told us that we would be allowed to make payments. We asked them to provide the paper work for this loan and an account number. We left 3 voice mails asking, never were we given paper. Then they send my parents a letter stating that they had 30 days to pay amount in full or they would pursue taking their home. We tried to reason with them and told them we could make payments but they said they didn't have to allow us that. What can we do? We don't want them to take parents home, dad is old and very upset and is just so afraid as are we. Please help with thoughts advice, reminders etc. thank you


Asked on 1/20/13, 12:42 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Not sure how they placed a lien against your parents' home. Did they obtain a judgment? If so, that lien should not have attached to their residence. Did your parents sign something (e.g., a mortgage) after the new bank took over the loan? If so, I do not see how there could be consideration for the mortgage, if no new money was advanced. I also do not understand how they forced them to sell the property. Did they foreclose their lien? In any event, your parents need to contact an attorney, immediately. It sounds to me that the bank is just bullying your parents, and I would guess a letter from an attorney might get them to back off of their threats.

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Answered on 1/21/13, 9:01 am


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