Real Estate Between Friends

Little Bo-Peep and Mistress Mary were best friends.  When Bo-Peep’s sheep ran off, she sold her cottage to Mary for $100,000 in a cash deal, done quickly so Bo-Peep could go find her sheep, and Mary could plant her garden.  Silver bells and cockleshells were just coming up when Mistress Mary was served a Lis Pendens.  She was quite contrary then! What is a little real estate between friends? Since Bo-Peep had owned the place for years and they were such good friends, Mistress Mary had bought it with a Quit Claim Deed, paid cash, and not bothered with title insurance or even a title search. Turns out the lawsuit was from two owners ago; Bo Peep did not even know about the problem.  Mistress Mary had taken on the $100,000 risk at the purchase; furthermore, without title insurance, she did not have a policy to financially protect her investment.  It was such a mess not even Mother Goose could sort it out.  If only Mistress Mary had had a Warranty Deed, at least she could have sued her friend, Bo-Peep!   Do not let friendship pull the wool over your eyes.  There are certain things you can do to […] Read More

What Is in a Name?

Once upon a time Henry Homeowner bought a home loan from Mistress Mary.  Now Mistress Mary had a reputation for being quite contrary (especially when it came to mortgage loans) so she had filed a fictitious name.  When Henry Homeowner bought a home loan from her, she was doing business as “M’s Mortgage Brokers, Inc.”…but she signed the loan as “M’s Mortgage Bankers, Inc.” “Brokers, Bankers—what is in a name?” Mistress Mary said to herself.  She proceeded to endorse over 300 more home loans, signing as “President of M’s Mortgage Bankers, Inc.”  Then she sold Henry Homeowner’s loan to Miss Muffet’s Mortgage Company. Now Little Miss Muffet was a good friend of Mistress Mary, and she let their friendship get in the way of doing good business.  Instead of thorough due diligence, Miss Muffett failed to investigate properly to check out what she was getting.  When Mr. Henry Homeowner got behind on his mortgage payments, Miss Muffet went to foreclose on his home, but found that she could not. The transfer of Mr. Henry Homeowner’s loan was invalid since Mistress Mary had endorsed the note for a company she did not work for nor was president of.  Of course the […] Read More