My fiance and I live in a house that was quitclaimed to her several years ago by her grandfather. Home was 100% paid for already and a loan had been taken out for $53k before the quitclaim was made and was under the grandfather's name 100% and said loan had been paid down to $40k. The grandfather ( who apparently likes to scam alot as we recently found out) had borrowed on the loan again after QCD was made and after a falling out with him due to other issues not related to this he has decided to stop paying on the loan on purpose. We have been trying to sell the house recently to move away from him since he lives in the same neighborhood and he constantly harrasses us and our kids but my real estate agent says there is a lien for $40k that has never been delinquent meanwhile the grandfather has a letter stating a delinquency of $53k. There's no way there's 2 loans but confused as to how one is paid up and one is in serious delinquency. We have never paid the loans ourselves and had entrusted he would pay it since we've given him money the whole time. How is this possible? Are we responsible for his actions or due to something he did illegally can the loan cause us to lose money selling the house? Sorry if pieces of info are missing it's super early in the morning and I lost sleep thinking about this. We are currently waiting for the title company to obtain pay off and it's been over a week.
Thanks in advance for any help.
Tl;dr: grandfather (who is a huge scamming asshole) took a line of credit loan, quitclaimed the house and reborrowed somehow and now refuses to pay it.
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