Legal Question in Real Estate Law in Pennsylvania
My mom is currently fighting my aunt over my grandfather's property. My aunt took it over about 10 years ago and took out a lien for $40,000 to buy her house and land. She is currently 3 months behind and still owes 18,000 on it. She is also late on her own mortgage and could lose her and my grandfather's house. My mom is buying back my grandfather's property the 18,000 my aunt owes to save his house and just found out that there are other liens against it. My aunt has 3,500 in credit card debt and 1,500 in civil suits that were attached to the original lien. If my mom takes the property will she have to pay my aunt's other debts?
1 Answer from Attorneys
I don't know what you mean by your aunt "took over" your grandfather's property. Was the land deeded to your aunt? Unless it was solely in her name or any other owners of the property consented, your aunt could not have mortgaged the property. Just so I understand, she mortgaged your grandfather's property to buy herself another house? Why didn't she mortgage her own?
From the fact that there are other alleged liens, it sounds like your aunt owned this property outright. Are the liens also attached to your aunt's property? A judgment acts as a lien on all real property owned by a debtor.
What is ypur grandfather's property worth? Your mother will have to buy the property for what it is worth. The lienholders would get the liens satisfied out of the sale proceeds. However, your mother does not personally pay for your aunt's debts. Unless something else can be worked out so that your aunt's creditors will release their judgment liens on your grandfather's property, I see no other alternative.
Your mother needs to consult with a real estate attorney in the county/state where your grandfather's property is located and she should direct her questions about the liens to the attorney and ask how those liens will be dealt with in order to get them released or satisfied.