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Hello. I'll be happy to assist you.
I can only address the US side of things (you'll need a Canadian law expert to tell you if he has a case under Canadian law, should he sue you there).
Under US law, he does not have a case. In order to have an enforceable claim, he must have a valid contract of some sort. To have a valid contract, there must be some understanding at the time the money was given that it was to be paid back. In other words, a person can't give someone else money, and then demand it back later if that wasn't part of the original agreement. If that agreement wasn't in place at the time, the courts will view it as a gift, not a loan. Assuming there was no agreement when he gave your mother the money for the foreclosure, it's viewed by default as a gift and you won't be forced to repay him.
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