Legal Question in Real Estate Law in Pennsylvania

When you bought the house, did your friend sign a deed to you and was the deed recorded? If he financed it, a mortgage should also have been signed by you and recorded. If both of those happened, the bank to which your friend owed money would be able to take over his interest in the mortgage, but as long as you are making the required payments, it should not be able to foreclose on the house and sell it.

If there was no deed and mortgage, and if you did not have some kind of written and recorded agreement, like an installment sale agreement, AND if the house is still titled in your friend, the bank may be able to take the house to sheriff's sale.

Because of your additions and improvements to the house, if you are able to provide evidence of your investment/expenses and the increased value, you may have a claim such as "unjust enrichment" against your friend and the bank.

In order to protect your interests, you must immediately consult with a real estate lawyer who is able to analyze the transactions and your rights, and who also handles court cases such as foreclosures and your defenses. Otherwise, you stand to lose your home and your investment in it.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.