The plaintiff lender sought to enforce a second mortgage arising from a refinancing scheme involving the defendants’ former matrimonial home.
The self-represented defendant argued that the registered purchaser held title as a bare trustee for him and that the second mortgage had been executed without his knowledge and was therefore not binding.
The court rejected this evidence, finding the defendant had full knowledge of the financing structure and had participated in arranging the second mortgage.
Email correspondence and surrounding circumstances demonstrated that he acknowledged the debt and promised repayment after default.
The court held the second mortgage was valid and enforceable and ordered that the proceeds of sale held in trust be released to the plaintiff lender.
