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My father passed away last april, 2000 in Michigan. My sister and I are the only heirs. He has a home, which he re-financed and had my mother co-sign with him for. They were divorced at the time. My mother's name appears on the loan from the bank. My sister went to the bank and told them he was deceased. They then transferred the loan to my mother. Well, all this time, the house has been up for sale. We have buyer, my mother went to sign the papers at the Title company, and Lo and Behold, it now needs to go to Probate AGAIN (we did not list the house on original probate filing, because we thought it went to my mom)due to the fact my mother's divorce papers say there is tenacy in common with no rights to survivor. My sister and I were told by (2) real estate agents and the bank holding the mortgage loan that the title was clear, and when people are right there to sign the ownership papers, we find out it isn't. My question is what legal recourse do i have against the bank, if any? They transferred the loan & responsibility to my mother, even though the divorce papers say no rights to survivorship...they were just worried about getting their mortgage payment. OH WHAT A MESS!!!
We have retained an attorney to straighten out the Probate, but I am LIVID against the bank, especially if the sale falls through, like I think it will. Is there anything I can do?



Bank liable for negligence?

There are two separate things involved, the mortgage and the title to the property. With you father's death, you mother was the sole person on the mortgage and the bank was not wrong in transferring the loan to her. However, probate would be needed to settle the title.

You have a cause of action against the bank and/or the real estate agents if you can show that (1) you were justified in relying on their advice, (2) that they were negiligent in giving the advise and (3) that their negligence cost you a sale and you had a loss because of that (for example, you could not later sell the property for the amount of the original sale price.) I would suggest you have your lawyer evaluate this.


Thank you!

Thank you for your advice. My sister and I have retained an attorney who is taking care of the probate part. I am going to speak to him about this, because our real estate agent actually paid this month's mortgage payment out of his commission, so the people who want to buy the home are getting a free month. (which they deserve for all this grief!) This kind of tells me SOMEONE screwed up!! Thanks again...and yes, definately need a lawyer for this mess!

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