Expert: Lori Frankfort - 11/14/2007

Question
I tok out a private party loan for a larger down payment on my house i purchased in January of this year.  I put up my 2001 motorhome and a Grant deed for a second, the baloon payment came up on August 31, 2007, which i did not have(30,000) this person repoed the motorhome (value 27,000) and now he said he also owns my home and is trying to evict me..i filed chapter 13 a couple of weeks ago,,what can i do?

Answer
That is so unbelievable - I can't believe there are crooks like this out there, I'm so sorry this is happening to you.  On the Grant Deed, does it say $30,000?  If it is for $30,000 and he already took your motor home, you only owe the difference between the two, or $3000.  He doesn't own your home.  Also, the nature of 2nd mortgages is that they are "junior" loans, they are second to the first.  If your home was ever foreclosed the holder of the 2nd wouldn't get a penny - they would simply lose out.  What they have done is illegal and won't hold up in court.  You need to find a real estate attorney that will help you.  If you can't afford one you should try contacting a government agency or the D.A.'s office to see if they have a resource for you.

This is my personal opinion, and not intended to be used as legal advice.  You should consult an attorney for clarification of your rights.

Good luck,
Lori