Does he have a right?

kazz3105_2

A friend of mine lives in a house with his long term g/f and her elderly father. Her brother does not live in the area and the house is in the dads name, today they got a letter stating that brother had taken out a loan on the property and they now have to go to court for a repossession order for the house, the brother stated on the application form that his sister and her b/f lived in a rented flat (that they lived in some years ago) and that his father was in a nursing home. The mortgage was paid off many many years ago and there has never been any debt (that they know of) on the property.
Can one of your legal experts please help let me know how they stand so that i can tell them.

olly300

Unless the father consented by signing some paperwork to allow the son to take out the loan against the house then this is fraud.

If it is the police must be contacted immediately, and the brother reported to the police.

However as you seem to know what is on the application form then it may not be fraud and you have to go and see a solicitor with all the paper work.

TonyMMM

On the face of it , it appears that it could be case of a fraudulent loan application by the brother - however I would assume that some sort of legal documentation was involved to secure the loan , ...

Does the brother have any ownership. or part ownership of the house ? Has the father signed anything in the past to take out a joint loan with the brother (whether he realised what it was or not) ?

kazz3105_2

There was, a few years ago some discussion about buying the brother out but as it stands it is still in the dad's name I have just rang my friend and he is going to check that out. The reason i know about the loan is because Dave (the friend) rang the company to find out that the brother said that he lived in the house alone.
Will keep you updated, thanks up to now.

Rafter

Unless the elderly father signed something giving the loan company some title on the house, is is very unlikely they could repossess.

As others have said, if the brother has lied or committed fraud then the police may have to be involved. The only other solution would seem to be for the daughter to 'buy out' the sons inheritance share and use the proceed to repay this loan so the brother doesn't end up with a fraud conviction and permenantly damaged credit record.

R.

kazz3105_2

Thanks to everyone. The daughter and father have made appointment with solicitor because he was bought out about 7 years ago, he relinquished all rights to the property. They are getting the solicitor to search for him, their words, "if he gets away with this he will try anything".

housebuyer_abc

Rafter wrote: »

Unless the elderly father signed something giving the loan company some title on the house, is is very unlikely they could repossess.

As others have said, if the brother has lied or committed fraud then the police may have to be involved. The only other solution would seem to be for the daughter to 'buy out' the sons inheritance share and use the proceed to repay this loan so the brother doesn't end up with a fraud conviction and permenantly damaged credit record.

R.

I would think the permanently damaged credit would be secondary to the two year minimum jail sentence for fraud of this scale