Can a loan company put a lien on my home regarding a loan that was defaulted on by another who has no rights to my home?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a loan company put a lien on my home regarding a loan that was defaulted on by another who has no rights to my home?
I own a home. My mother has pulled a personal loan on herself even she has no property, no income, only receives social security disability. She got a loan to have a pool built in my home but stopped paying on it. She has title or anything to my house.
Asked on July 1, 2013 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Legally, someone who has no ownership interest in property cannot create or give someone else a security interest in that property; and person's A property cannot be liened for person B's default. So from what you write, it would normally appear there is no basis for lien on your property. An issue may be, however, that the loan company may reasonably believe that if your mother used the loan to build a pool in this house, that she must be an owner of it, and you'd have to prove to the contrary; and/or your mother may have committed fraud and represented that she was an owner (and therefore could encumber the property) to qualify for the loan. As an additional complication, the law sometimes allows what's called "equitable liens," which means the creation of a lien to avoid blatant unfairness, even if ostensibly, there should be no lien. If you did not object and allowed your mother to pay for/build a pool in your home, the law might consider you the beneficiary of the loan and therefore consider it equitable to allow the imposition of a lien. This is a complicated situation, and one which could involve having to press charges against your mother, if she misrepresented or lied about having an ownership interest in your home, to resolve; you should consult with an attorney in detail.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.