Question: After my husband died I became the sole owner of our Surprise home which we owned free and clear. Two years ago my granddaughter got in a bad automobile accident with no medical insurance. My son said that if I deeded my home to him, he could get a mortgage on my home to pay for these medical bills. After I deeded my home to my son he got a $60,000 mortgage on my home, but now has used most of the mortgage money for drugs and partying, and not for my granddaughter’s medical bills. I am very angry with my son, who is now threatening to sell the home for the remaining equity. He says that I will then be evicted by the new owner. Is there anything that I can do? Help!
Answer: If your son misrepresented to you the deed’s purpose, namely, to get a mortgage to pay your granddaughter’s medical bills, you should be able to rescind the deed. You will then again be the owner of the home. Unfortunately, however, the $60,000 mortgage on your home is probably still valid as the mortgage lender was entitled to rely on the recorded deed to your son as the owner of the home. An attorney can assist you in rescinding the deed to your son. The attorney should also be able to assist you in explaining your hardship circumstances to the mortgage lender who may be willing to extend the term of the mortgage to reduce your payments, or even lower the balance of the mortgage.