Legal Question in Real Estate Law in Maryland

Long situation so I thank you in advance for your time.

My parents were recently divorced. Apparently my father took out a loan against their property during their separation and part of their divorce decree was that the property was to be sold in order to pay off the outstanding debt and the remainder of the sale was to go to my mother. Recently we found out that the loan that was taken out was in BOTH my mothers and my fathers names even though they were legally separated at the time. When we acquired the paperwork for the loan it had my mothers forged signature on the paperwork.

So right now we are at a bit of a loss on how to proceed. Would it have been possible for a loan to have been taken out without both persons physically being there? Because the loan was taken out on the property that both parties own, does it make both parties responsible for a loan even if one party did not consent to it? If this is a case of fraud, how does the loan get handled? How does the property get sold? What should the next step be?

Thanks again in advance.


Asked on 6/24/10, 6:19 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Your mother is not responsible for this loan and she should try to prove the forgery to the lender in an effort to get them to voluntarily remove their lien on the property. If they refuse, she can bring a law suit known as a quiet title action to have the court strike the deed of trust which is the lien. The lender of course retains its right to repayment of its loan from your father just like any other debt. Typically in a transaction like this both parties have to show up at settlement and prove their identity so the title company could be held responsible as well. Your father probably represented that your mother couldn't make it and he would get her signature on the papers in advance.

This matter requires the assistance of an experienced real estate attorney and also one who handles litigation matters.

Read more
Answered on 6/28/10, 6:34 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Maryland