Legal Question in Real Estate Law in Maine

Q: My wife and I built a home two years ago, and my brother-in-law assigned himself the general contractor. We each of 1/3 ownership in the property, and the original mortgage was for $177,000.00. Two weeks after my wife and I moved into the house, my brother-in-law presented us with a bank note for $21,000.00 for "building cost." Would my brother-in-law have to notify the mortgage lender of the $21,000.00 bank note because he is representing the value of the property as $197,000.00, but we only make mortgage payments for the $177,000.00, and if he did not would that void the note?

We currently have the property for sale because the mortgage payment became 51% of our debt to income and we currently can no longer make the payments. Since my brother-in-law is 1/3 owner, if the property sells, would we have to repay the note of $21,000.00? Help in Maine.


Asked on 9/29/09, 7:25 pm

1 Answer from Attorneys
Elliott Teel Teel Law Office

Are you saying your brother borrowed $21,000 against the home? Or was he billing you $21,000? If this amount has been recorded by the bank (at the Registry of Deeds), then it will need to be paid off in order to clear the title before the any sale can be finalized.

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Answered on 10/05/09, 8:36 am


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