Screwed On A Sub 2! NEED HELP QUICKLY!
A mortgage broker that I have worked with on several deals offered me an opportunity to purchase a home with $100k of equity from a couple in divorce proceedings. The broker told me that if I would purchase the property, he would give me $10k up front, cover all of the closing costs, and pay me an additional $30k in six months when the property was sold to one of his clients. In return he wanted me to quit claim the property to his trust. When I quit claimed the property to the broker, neither he nor I drew up a note to protect my interest in the property. Seeing that I worked with this guy on several deals, I trusted that we would get this matter taken care of immediately.
Well, a month later, when the first mortgage payment was due, the broker claimed that the L/O tenants had lost their jobs, and that he would instead move into the home. Over the course of the last eight months, the broker has probably made three payments; forcing me to make the other payments to salvage my credit. Much worse, he rarely returns any of my calls.
I beat myself up everyday over all of the idiotic mistakes that I have made with this deal. Is there anything that I can do to regain possession of the propety? Any suggestions would be greatly appreciated.
If my dumb mistakes can help any newbies, take heed. Unfortunately, there are a lot of crooks in real estate disguised as moral, law abiding investors. Make sure to always follow through with all legal protection prior to finalizing any real estate deals.
You really do need to speak with an attorney about this. He/she is the only one qualified to give you good advise.
I will tell you that you are going to have to go to court.
These are the type of people that you have to go after, Sue him.
Lukabrasi,
I agree with you 100%. However, on what grounds can I pursue a lawsuit. He technically owns the property.
there has got to be some kind of paper trail as proof
Is there a specific paper trail I should be looking for?
Yes, it does seem like you have gotten yourself into a Mess and it is insightful for all of us to realize that the very same techniques that we use to protect ourselves can also be used against us by unscrupulous individuals.
My only insight to help you out is my knowledge of human nature. If this individual is acting this way to a "valued Client" you can be sure that he has done this or similar things before. I would contact the licensing agency that allows him to do business as a mortgage broker and file a complaint. I would also go over all of the previous transactions that you have done with him and look for anything that you can attack him on. Also try to find past "Clients" of his that he has cheated also. Like the other posts have indicated. You need to get a lawyer on your team to help you in this situation.
[addsig]
how did you aquire this property? conventional loan? I am not a lawyer, but their has to be a certain higher code of ethics that not only real estate agents are held to but also brokers. this transaction probably violates this code and you should def. talk to a lawyer about this, has he paid you any of the money you stated, and is your name on the loan?[ Edited by lukabrasi on Date 06/27/2004 ]
You can say that you were coerced into signing the quit claim deed and the fact that you never got compensated in anyway maybe a factor for you in court. You need to consult an attorney. Go for a top of the lane real estate attorney who get paid only when they win the case. You may also want to file a complaint with the company this guy works for. The company may pay up if they feel they stand to lose or feel the nuisance factor is a lot. but in any case go to an attorney
Good Luck
He did pay all agreed costs to acquire the property. However, after his tenants fell through I've been paying the mortgage to salvage my credit because the loan is in my name.
Sounds like the guy is guilty of rent skimming which is probably a criminal offense in your state. I'd talk to my local District Attorney, my state's real estate commissioner, and the media. If he's looking at a criminal trial, the prospect of losing his license, and having his face on local television news programs, he just might do the right thing...though I wouldn't count on that.
CanUBelieve,
Please do keep us abreast of this situation. Would like to see the good guy win!
[ Edited by crazyfnmama on Date 06/27/2004 ]
write a letter to the attny general stating just what you told us. also state that you intend to go to what ever local or state media will listen.. state that you believe this to be a rising epidemic in your area. this will get the attention of the AG as they generaly wont get involved in single action disputes. they may in turn assign this to your local DA free of charge. you must be very, very, persistant....man that sucks..BEST of luck my friend.
regards-pat
Ding, ding, ding!
The loan is in your name. Ah, thank God.
Ok, have that little fellow deed you back the property -maybe even give'em $500.00 to move out (hey, it'll help)!
You then have the property.
Sell the property outright and take the $. Buy John$Cash$Locke's Subject To program.
Put that $ you earned in another investment or property.
Now, buy properties on your own.
I can tell you that this year alone, my two and only "partners" have each walked off with $ in hand after I put all the two deals together, hired & directed all subcontractors and worked my tail off. 10K in one and 30k in the other.
What did I learn? For now I'm done with partners, and when I come to, I'll get everything written down, spelling all duties out, including an exit clause for them: Yes, you can exit this contract. The cost of that exit is $10,000.
Sign it, love it, live it. If not, I don't need it.
Thanks,
OTW :-D
PS I'm not an attorney, nor I do I play one on the Net. :-D [ Edited by OnTheWater on Date 06/30/2004 ]
consult a re attny. you have already stated that you don't know what to do. you need legal advice quick this guys a pro. he had this planned and i'm sure he has other plans up his sleeve. you can be sure he's ready for your next move. if you don't take legal action he'll simply say he has done nothing wrong you signed the q/c....good luck...godspeed....kenmax