Wow, this is a new one on me. I have been a Realtor for 23 years and have never heard of someone taking a mortgage on a home that they did not own. If he is not on the deed, then he does not own the house, so how could he pledge it for collateral on a note????
Furthermore, if you own a home that does not have a valid mortgage (you haven't mortgaged YOUR home) then how can you be in default???
Call a GOOD lawyer, if what you are stating is true, it sounds to me as though you may own a house free and clear... I am not a lawyer, and I don't play one on tv, but makes sense, nes pas?
I know of a great Realtor in the Boston area. very intelligent, he will help you. Call or email me and let me know how it works out... I am really curious about this one.
Keller Williams Realty
Longmeadow, Agawam and Northampton, MA