[quote frenchlambda]My initial goal for starting this thread was to understand if my ex-in-laws have a legal right to proceed with foreclosing while I STILL make payments to them (as well as the first lender) EVERY MONTH.[/quote]
This is why the details are important. There isn’t a state or federal law that will specifically prevents your inlaws from doing this. It depends upon how the agreements were worded. Your being current and the note not being callable except in default indicates that they can’t foreclose. The specific wording of the loan seems to be odd. There is also a requirement for you to refi, making it possible that you would be in breach of that portion of the MSA. That still doesn’t mean that they could foreclose. The consequences of not refi’ing are not spelled out from the section of the MSA we saw.

I don’t know if there is a French equivalent to the following:

The Devil is in the details.

That said, there are other ways to ‘counter’ the foreclosure if it is legal. This was the other aspect that was being covered with respect to the 85K. When dealing with items like this, you don’t only look at one thing. What you may loose with your left hand, you might be able to gain with your right (provided you don’t forget that you have a right hand available).