Legal Question in Real Estate Law in Rhode Island

Mortgage Problem

Hi, I will try to make this short. In July 2006, my 73 year old grandmother got talked into refinancing her home to help pay off some CC debt. To make a long story short, it was predatory lending...they promised her abc and she got xyz. She received an adjustable rate and was promised fixed, payed off 2 instead of five bills, her payment is like 2500.00 a month for a 290,000 loan. They had 3 appraisals done and the house is worth probably 100,000 less than the 290,000 they apprasied it for, etc.....Here is the problem. In order for her to build on land she had(not much-the only way it was buildable is because she was grandfathered in)she never even built on it-that's a different story; she had to put my brother's name on the deed-for some reason I don't know. Anyway, when she went to refinance, they said he had to sign the mortgage too. He did not have a job at the time and no credit whatsoeverand they did no credit check. His name was taken off the deed about 3 months ago and she is now facing the fact that due to the high payments, she may have to foreclose. Will my brother be responsible? I don't see how he can be because like I said he had no job at the time, how can he be liable for a mortgage payment. Please help!!!


Asked on 9/21/07, 10:17 am

1 Answer from Attorneys
Jules D'Alessandro D'Alessandro & Wright

Re: Mortgage Problem

WOW!

There is a lot going on here. I am unable to say whether your brother will be responsible for the mortgage or without actually seeing the mortgage paperwork and how he is or is not listed on it. However, the fact that he did not have a job has no bearing on whether he will have to pay the mortgage. If he is listed on the mortgage as a co-debtor with your mother then he is jointly and severally liable for the full amount of the mortgage along with your mother. This means he may be responsible for anywhere from 0 to 100% of the loan. There may be relief for your bother and mother under a new law entitled the "Rhode Island Home Loan Protection Act", RI Gen. Laws 1956, ยง34-25.2-8. To determine this there must be a comprehensive review of ALL mortgage paperwork

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Answered on 9/21/07, 11:04 am


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