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Roger
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31012
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I am currently going through a divorce and have a two

Customer Question

I am currently going through a divorce and have a two marital rental properties. My partner has been managing and collecting rents for these properties over the past 4 years and refuses to give me any portion of the funds. I recently found out that the taxes on the properties have not been paid for at least 3 years and investors have purchased the tax liens. The properties were owned free and clear with no mortgages. However, recently I found out that my partner used the property as collateral and issued a promissory note for $70,000 (stripping the equity of the property) without my consent and authorization. The taxes are still not paid and might go into foreclosure. Does this rise to the level of fraud? What can I do to recuperate my interest on these properties?
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Roger replied 5 months ago.

Hi - my name is ***** ***** I'll be glad to assist.

Expert:  Roger replied 5 months ago.

The first thing you need to do is get the taxes paid to prevent a tax deed from being issued to one of these purchasers at the tax sale....if that happens, you could lose your ownership interest in the property.

Expert:  Roger replied 5 months ago.

As for the loan, it could be fraud if your spouse forged your signature.....but if he borrowed the money in his name alone or if the properties are in a company (like an LLC), then he could have signed for the company if he's the manager, etc.

Customer: replied 5 months ago.
The note was issued under my partner's name only and there was no LLC involved. I do not have the funds available to do bring all taxes current. Aprox. amount needed is $30,000. The rental income was supposed to be used to cover all expenses including taxes. I believe the intent was for me to loose everything. The question is does this rise to the level of fraud? What can I do to stop it?
Expert:  Roger replied 5 months ago.

It's not fraud that the taxes weren't paid....and it is not fraud if your spouse borrowed money in his name alone, pledging the property as collateral. However, if he did this and the loan was only to him, and you didn't sign anything as an owner of the property, then the bank's lien should only attach to his 1/2 of the property --- and yours should not be encumbered.

Expert:  Roger replied 5 months ago.

The only time you'd have an issue of fraud is if he forged your name........

As far as stopping all of this, the only real way to do that would be to file chapter 13 bankruptcy and work out a payment plan that would allow you to resolve these debts over time without losing your assets.

Expert:  Roger replied 5 months ago.

Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I may receive credit for assisting. Thanks again!

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