Legal Question in Real Estate Law in New York

Sister in Home Gone Bad

My husband purchased a home for his sister, he was in England at the time, she had POA. Her name ended up on title and should not have. Wasn't removed, she was going to assume loan after about 2 years. She has already gone 120 late once, ruining my husbands credit. She is doing it again. We want to do a deed in lieu because she is late again. With her name on the deed in error, what is the best way to resolve the problem. I don't think she will take her name off and do the right thing. The house is in another state, my husband has never lived in that house. The first time she went delinquent he did whatever he could to catch up the payments. Including taking on more debt. His credit went from 750 to 550. Now we do not have the means to make the payments for her. Again, her name is erroniously on the deed, not on the mortgage loan, that is in his name only. Any help will be greatly appreciated. We want out as quickly as we can get out, with the least damaging affect to his credit. She has already done enough damage to that. Thank you for your time.

The home is in New York, we are in New Mexico.


Asked on 2/04/07, 9:13 am

2 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Sister in Home Gone Bad

I am not certain how his credit could be damaged when he in not on the loan...that means he is not an obligor. In any event, there are many nuances here that can affect things. Feel freee to email me with a bit more info syuch as where the property is located.

Good Luck

RRG

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Answered on 2/04/07, 10:01 am
Phroska L. McAlister PHROSKA LEAKE McALISTER

Re: Sister in Home Gone Bad

In NY, If your husband's name is the only name on the mortgage, but is not on the deed, the mortgage and mortgage transaction, would be considered highly irregular (ie., possibly illegal,) which could provide your husband with the leaverage to negotiate, an out of court settlement, WITH the mortgage company, to "cancel" "void" or provide "restitution," re civil, criminal or equity grounds.

If both your husband and his sister's name appear on the deed, your husband may want to consider a Partition Action, to compel his sister to transfer title to him and/or the mortgage company. Which Action, can be an expedited process.

Good luck,

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Answered on 2/04/07, 10:19 am


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