Father sold foreclosed home, keeps renovation funds, brother pushing court action. Legal steps & timeline?

Question

My father sold his house, which was in active foreclosure, to my husband and me on July 3rd. We obtained a loan for $362,000, with $300,000 going towards paying off the house and the remainder intended for renovations. My father verbally agreed to wire $45,000 of the renovation funds to us but kept $17,000. He signed the wire transfer form at the closing, but now claims he doesn't remember this agreement and wants to take us to court to reclaim the house. The deed has been recorded, and all legal paperwork was signed by him in the presence of a notary. We've used the renovation funds on the house. Recently, my brother was appointed as my father's Power of Attorney and he's pushing to go to court. I've been told my brother is consulting an attorney, but I haven't received any official notices. How long will it take for the case to proceed, and will I receive something in the mail if he decides to take this to court?

James L. Arrasmith · Answer

Since the deed was recorded and signed by your father in the presence of a notary, the home legally belongs to you and your husband. That recorded deed is strong evidence of ownership, and it is very difficult for a seller to undo a sale after it has been lawfully completed. The verbal agreement over the renovation funds may be disputed, but the property itself is not likely at risk unless fraud or incapacity at the time of signing could be proven. 
 
If your brother, acting under Power of Attorney, decides to take this matter to court, you will not be left in the dark. A lawsuit cannot move forward against you without you being formally served with legal papers, which are usually delivered in person or by certified mail depending on the jurisdiction. The process typically takes weeks to months after an attorney is hired, since drafting and filing a complaint, paying fees, and arranging service of process all require time. 
 
For now, keep detailed records of the closing documents, the wire transfer form, and receipts showing how the renovation funds were spent. If the case does proceed, you will have an opportunity to present all of this as part of your defense. While it’s unsettling to hear threats of court action, remember that until you are officially served, nothing has formally begun.

Q: Father sold foreclosed home, keeps renovation funds, brother pushing court action. Legal steps & timeline?