Legal Question in Real Estate Law in New York
mortgage holder broke verbal agreement to sell us home after we already put $15K
My boyfriend and I moved into his mothers 16 months ago. The mortgage holder agreed she would allow us to assume the mortgage. We at that point started paying the mortgage & doing extensive work on the house, a new roof, new furnace, etc. We have paid almost $15K into the mortgage and repairs over the last 16 months. Now the mortgage holder decided that she wants to forclose on his mother for back taxes that she owes her (about $10k). She had told us before that she might want us to add that $10 to our mortgage when we sign the final papers, we told her we were uneasy about that, and made no committments to do that. The original agreement was that we were to assume the balance of the mortgage, that was it. Now she wants us out after we have poored all this money and time into this home, including a new nursery for our baby. What kind of recourse do we have for her breaching the verbal contract we had to assume the mortgage? How can we get our money back for what we paid for the mortgage and the repairs. On all of our payments/checks I wrote ''mortgage'' NOT ''rent''. She has not told us when to get out or given us anyt
3 Answers from Attorneys
Re: mortgage holder broke verbal agreement to sell us home after we already put
I would restate Mr. Connlly's response more simply: if you assume a mortgage that is in default, then your interest is obviously subject to the mortgagee's remedies for default, including foreclosure. I suggest you consult an attorney for an accurate assessment of your rights and options.
Re: mortgage holder broke verbal agreement to sell us home after we already put
I agree with Kevin both as to your priorities (getting the Deed in your names and paying the back taxes). It seems you were aware of the back taxes obligation, as you discussed this with the mortgage holder. She did not add the amount to your mortgage, so they remained unpaid. When you assumed the mortgage, you also took over all responsibilities of the mortgage which, as Kevin stated, usually also includes the responibility for payment of taxes and maintaining insurance, and also were exposed to any claims against the prior mortgage obligor (your boyfriend's mother). If she did not pay the taxes, she was subject to having the mortgage called for being in default, and by assuming the obligations you were placed in her shoes. Sounds like you did this on your own, with the assistance of an attorney, who should have told you what responsibilities you were undertaking. Even if you were only to pay the mortgage itself, and his mother was to continue to pay the taxes and insurance, you are subject to see all obligaqtions of the mortgage are met, regardless of who was to pay them, you or his mother. If they remained unpaid, the mortgage holder is still entitled to have the payments made, or can sue under the mortgage for the default in payment. You made improvements at your risk, by not verifying that all obligations, current and past, had been met. Either you and/or his mother had better get thse payments current or run the risk of the calling of the mortgage or a foreclosure
Re: mortgage holder broke verbal agreement to sell us home after we already put
"Taking over the mortgage" usually refers to getting a deed of the property as well. In any case, there is more to a mortgage than paying principal and interest. There are (normally) at least taxes and insurance.
The mortgage holder is entitled to foreclose if the taxes are not paid or if the property is not insured by the owner. You can (usually) remove the tax problem by paying the taxes. Even if the mortgagee did not foreclose, you could lose the house due to failure to pay taxes.
So, you should take stock of matters. Did you receive a deed to the property? If not, then that plus paying the taxes should be your primary objectives. You might be able to fold the tax payment into a new mortgage (i.e., refinance with a real lender).
The mortgagee would not (yet) tell you to get out. There has to be a foreclosure first. Then the time will come to be forced out of the property, unless you fix the tax problem BEFORE the foreclosure is completed.
This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.
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