Scambuster Blacklist and Scams,
Ripoffs, Business Cheats
Real Estate Fraud
Victim Seeking Advice
Real Estate Ripoff? What can I
do? wuffmn 56 Nevada, USA, writes:
I need some advice.
An publicy-traded real estate investment
company bought 2 houses from me subject to existing financing. In
the contract I have with this RE company, they agreed to make timely payments
on the mortgages, HOA fees, etc. They also agree to transfer the
mortgage into their name after 6 months, or 6 months from date prepay penalty
expires. One of the houses loan has NO prepay penalty.
Our agreement was signed on 11/17/06 and
recorded 11/21/06. Therefore, if they have not removed my name from
the mortgage via selling, refinancing, etc., they will be in default on
the contract. They also have been late with the mortgage payments
EVERY month. They have not yet made payments for this month (it is
now 4/21), and I fear they will not make them before end of month (thus
ruining my credit) and may stop making them altogether. They also
have not paid all HOA payments. They are clearly in default of our
contract, and I will likely sue them and win eventually. Their company,
according to their SEC filings, has many millions of dollars in assets
(mostly real estate).
Now my question is this. Is there
anything (other than making the payments out of my pocket - which I can't)
I can do to save my credit? If the payments are not paid, foreclosure
will begin. With the declining RE market, the houses now have no
equity. . . would sell for less than mortgages. Will the bank ask
me for the difference in what they sell the houses for after getting it
REO, and the amount on the mortgages? Are my other assets (residence,
savings, etc.) at risk of being attached by the bank? What happens
if I contact the lender L/M department and tell them I sold the properties
subject to? If they call the loan due, nobody pays, and foreclosure
begins - do they go after the owner of record (company I sold to S2), or
do they go after me? Lesson learned for the future, but is there
any hope for my situation?
unfortunate situation indeed. . . just shows that you can't always trust
even a publicly-traded company. The bank can ask you for the deficiency,
but likely will not. It is possible that your other assets (except
your residence for which you have filed homestead). If you tell the
bank you sold the properties, they will probably call the loan due if it
is not being paid. As long as it is being paid, they usually do not
care. If they call the loan due, you will have 30 days before foreclosure
proceedings begin. In foreclosure they go after you who signed the
promissory note on the mortgage. Your best hope may be to pursue
legal action against the RE company who breached its contract with you.
By the time such a lawsuit is settled, your houses may have already been
auctioned off in foreclosure. Your credit will unfortunately
suffer as a result of the foreclosure, but you can take the steps to rebuild
it afterward. You may be able to use the explanation that you were
a fraud victim which caused the foreclosure, when you begin to make the
comments on your credit file.
the webmaster checks for accuracy, the views and comments expressed here
belong to each individual and do not neccessarily represent an endorsement
by the webmaster or this website.