Seems like a dead thread, but I was just thinking of something. I am assuming that she signed the doc because he was trying to get a loan. Did he give you the money to start your business out of the equity of the house?

I understand what you are saying about putting money into the house and not getting anything, but did he put money into your business? If you get money from him he will be able to get money from your business. It has been 7 years I say cut your losses and move on. I agree with everybody here you will have to fight and you may loose the battle probably not worth the heart attack. I would talk to a couple of lawyers. Don't take the word of only one.

Doesn't seem worth it, but I don't really know your story.

Remember just because you have a lot a debt you are still making money. That is what the court will look at.