Losing home due to sister's fraud

[Zachary]

What is the name of your state (only U.S. law)? New Jersey...
My wife just found out that a home she and sister owned free & clear (both names on deed) is in foreclosure. Apparently her sister somehow got a mortgage by forging my wifes signature without my wifes knowledge and the sister has failed to make payments. We have also found that the sister took out a second mortgage (without my wifes knowledge or forging her signature) and that is also now in foreclosure. Do we have any options to try and save the house?

 

[John Se]

How do you hold title?

I am betting that you have it as tenants in common and I bet in your state that she could mortgage her share. So if they foreclose they only foreclose on half their share, so then they sell half a house at auction, who do you expect to buy that? If it is truly fraud then I think the lender has been defrauded, so tough luck for them

 

[nextwife]

Sis should talk to an attorney. If the docs were fraudulant, that also means the notarization was fraudulent and the closing agent may have failed in their due diligence. The lender may need to collect from their lender's title policy - you need to have legal counsel challenge the validity of the mortgage as to YOUR participation/interest.