Legal Question in Real Estate Law in Virginia
Breach of contract / Lien against Estate
Husband and wife were getting divorced. Husband was ''given'' 30K from father to ''buy out'' wife. Husband dies suddenly. Wife now owns home sells house to me and one week prior to closing the father of the deceased(who hates the daughter in law) places lien against the estate to get his 30K back even though he received 500K life insurance policy and he has no legal rights to the home. The 30K appears to be gifted but father now says it was a loan and will not release lien until he gets it but i was told his attorney advised him that the his suit was borderline frivolous because there is no proff it was a loan. Daughter in law doesnt have the money and says the sale of the home will barely cover the 1st and 2nd mortgage she was left with. Big catch22 and the only outcome appears to be that she will be forced into foreclosure because of his hate and discontent over his sons death. My loan lock has already been extended through late Dec but loan expires in January. Please help.
1 Answer from Attorneys
Re: Breach of contract / Lien against Estate
The wife of the deceased husband could bring an action in the circuit court where the property is located to have the lis pendens/lien lifted as an invalid encumbrance upon the property. The father of the deceased would then be required to adduce proof of the validity of the alleged loan and if he failed to do so, the court would likely order the encumbrance removed.