Health & Fitness
"Client was Deeded the Property 10 years Ago"
Sometimes you just can’t make this stuff up. Jenn came to see me for some advice. She was living with the former owner and they wanted to go their separate ways. He had an attorney draw up a deed and conveyed the property to Jenn.
There was a mortgage on the property, so the conveyance was subject to the debt. Over the last 10 years the mortgage was paid by her on a regular basis, she told me there is about $60,000 still owed. All was going well until two events happened. IRS placed a lien on the property for back taxes and there was a fire that caused about $25,000 in damage.
She contacted IRS, but they said they can’t help her. He had continued to use her address, as his address. She also attempted to contact him, but so far has been unsuccessful. He apparently is in parts unknown. The insurance has constantly been paid through the mortgage and never been changed out of his name. The insurance company is willing to write a check for the damage, but the check would be made out to the bank, the former owner and Jenn.
I referred her to an attorney to attempt to unravel this mess. When something is too good to be true, it usually is. In situations like this folks need to be properly represented in the beginning of the transaction, to avoid problems.
What advice would you give Jenn?