Legal Question in Real Estate Law in Wisconsin

Unfortunately, there is no legal requirement that people actually understand the legal documents which they sign. Rather, it is only necessary that they sign them freely, voluntarily and with an opportunity to review them. If they do not bother to review them, or whenever people sign things that they do not understand, they take a horrible risk. Fees and charges in the fine print, which they would not want, are turned into legally enforceable obligations and they become stuck with a lien against their home (due to their notarized signature on a recorded document). Such a first mortgage will often even survive a bankruptcy filing and can only be removed via payment in full, although second mortgages can sometimes be removed in chapter 13 bankruptcy. If your mother was truly the victim of a mortgage scam (of which there are many these days particularly targeting the elderly), she should go to law enforcement and file a criminal complaint. However, I would first recommend that you gather all the closing documents and review them, since it is possible that this is only a line of credit which has not yet been drawn upon. In that event, it would be normal and proper to show the existence of that account on her credit report as a potential debt. If draws were made against the line of credit, it should be very simple for your bank to trace where the money went.

Do not assume that I am your attorney due to this answer, but feel free to call my office in Racine (262-633-3090 or email [email protected]) for clarifications or further questions. I would not normally be taking any further action on your case without your making additional arrangements. See me on the web at www.jayknixonlaw.com. View my past answers at http://www.avvo.com/attorneys/53401-wi-jay-nixon-1529181/answers.html?sort=recency , or http://www.lawguru.com/answers/search/attorney/jknixon.