Originally posted by HomeGuru:
You can sue for fraudulent dealings but title would not be cleared if you prevailed. You have alluded to the possibility of making a claim that the mortgage is voidable and unenforeable due to the notary problem. Even if the mortgagors signatures were not notarized, the mortgage would still be valid and enforceable although the document may not be acceptable for recording. In your case, the execution of the mortgage and the prom note, and the recording of the mortgage document creates the lien automatically. The fraudulent notary does not void the mortgage and lien that is created. Your interest in the property is subordinated to the first mortgage lender. Most likely the mortgage was recorded first, then you aquired interest in the property.
Actually, I aquired the property prior to the mortgage being recorded. The deed is in my name, not my fathers nor my wifes. She automatically gets marital interest but my father has no ownership interest at all. Should I sue at all angles afterall, All I want is an end loan. The construction loan is at 15 % and was actually due april of 1997. They now say that 218,000 is due, the property appraised at 170,000 and the original note was for 123,265. Remember, they were to refinance at the end of contruction, which they have failed to do. <HR></BLOCKQUOTE>
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Something does not seem right. You aquired the property prior to the mortgage and the deed is in your name. Yet you are not on the mortgage and your father and your wife are on the mortgage but not on title. Lenders do not close mortgage loans to individuals that do not own the property because in this case your father and your wife can not offer the lender the requisite security interest in the property.
The 15% interest is high. The high interest rate, the title/mortgage discrepancy and the fake notary leads me to conclude that this was not a normal conventional transaction. And you have not provided the full details. Under the circumtances, no lender will provide an end loan because the title is messed up due to the mortgage and there is a negative equity in the property.