Judge Allows Foreclosure To Proceed On Now-Deceased Man's Property Despite His Forgery Of Wife's Signature On Loan Documents

In Polk County, Iowa, the Des Moines Register reports:

• A Polk County judge has delivered a legal setback to the widow of Ed Boesen. Judge Douglas Staskal ruled last week to allow Freedom Financial Bank to foreclose on property [...] in Ankeny to collect on a $232,000 loan obtained by Ed Boesen. The ruling rejected Maureen Boesen's claim that she was entitled to inherit the property, which was used as collateral for the loan.

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• [H]er lawyers claim the loans were invalid because of the forgery. Her lawyers also claim that she should be permitted to inherit property used as collateral. In his ruling, Staskal said state law generally upholds a spouse's right to inherit property when the spouse has not approved a loan connected to that property, or the sale of the property, by the dead spouse.

• But the judge said the law makes an exception when the loan is considered a "purchase money mortgage."(1) [...] "Under most circumstances, Mrs. Boesen's arguments would certainly prevail," Staskal wrote in his decision. But "the priority of a purchase money mortgage over the dower interest of a surviving spouse established by statute is consistent with Iowa common law."

For more, see Foreclosure on Boesen property to proceed.

Go here for earlier reports on this story.

(1) A purchase money mortgage can be taken by a lender who provides money to enable the purchaser to acquire the real estate. It takes precedent over other liens and claims on a property. DeedGammaTheft