Contract Unconscionable

heres the situation…my wifes mom died last month and had no will,however she took out a refi loan in 2000 with my wifes older sister (mentally and physically disabled) on the note. with this transaction the sister was added to the deed as joint tenancy with right of survivorship so by florida law she is the only person on this property. problem is no power of attorney was in place,nor guardianship for the disabled sister,but the mortgage lender (wachovia) wants to foreclose on the loan due to not being able to secure insurance,with payment raising from 675.00 month to 1450.00 +- with bank supplied insuance. the sister cant enter an agreement with any insurance company. what can be done to fix this situation?

Craig

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Hello Craig,

Where the borrower was mentally incompetent, the common law contract defense of unconscionability may be applied to stop a foreclosure.  You definitely need to consult with an attorney.  I’ll give you the Stump The Experts award for the day.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.