Q: In 2010 my mother took out a $200K Home Equity Line of Credit on her home in New Jersey to give me a mortgage to
purchase an investment property in New york. There was a signed mortgage note for the loan. The note states the loan is subject to the laws of New York. In 2014 my sister learned of the loan and coerced mom to requesting repayment. The building was sold and mom accepted $100K, had the attorney write me a check for $50K and verbally told me she was satisfied. No one ever mentioned this again and no one ever asked me for any money related to this. Mom passed Sept 2021 and my sister is now demanding repayment of the full 200K with interest. Unfortunately the lawyer never closed out the mortgage note, but it was obvious mom was satisfied with the resolution of the loan at the closing. She in fact gifted me and my wife 3 acres of property in 2015. Does my sister have any right to a claim on the balance of the loan? We are co executors of mom's estate. Thank you for your Time.
A: There are many legal issues here that need to be reviewed by an experienced real estate litigation attorney, and probably also a probate attorney. Think about how you got yourself into this mess in the first place: relying on verbal assurances when exchanging very large sums of money without consulting with a professional attorney on your rights or the consequences of your actions. If you try to do a quick fix again, you will likely make the situation even worse. Do the responsible thing and hire a knowledgeable attorney before you end up in serious trouble.
Steven Warren Smollens agrees with this answer
A: Your sister very much has a claim. Given a lawyer was involved, this was very sloppy all around. An interest in real estate can only be altered with a writing. You have none. The mortgage remains of record.
Steven Warren Smollens agrees with this answer
A: There must be a paper trail your new attorney may follow. You sold the property you purchased with your mother's loan of investment money. The title was transferred from you to the buyer. Checks were issued to you and to your mother. Your attorney prepared a closing statement. The title company issued a report. Did you sell the property for $150,000 and take a $50,000 loss? Then there should be a record in your tax returns. The same is so for your mother. Your new attorney will need all these records, so start digging.
Daniel Michael Luisi and 2 others agree with this answer
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