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Did lease to own purchase, turns out previous owner took out $1 million loan on property and took off. Person we purchased from has a warranty deed of $186,800.00 on property. Who owns the property, Bank for $1 million or Warranty Deed for $186,800. Looks like either way were going to be evicted because we do not belong there. Were we scammed out of our savings??
Looks like it. If whoever gave the $ MIL loan has a recorded mortgage, the deed is subject to the mortgage. If the mortgage is delinquent, the mortgagee can foreclose. You loose.
Next time you invest a sustantial amount of money, particularly in real estate, obtain legal advice.
Is property worth 1 million ? Is this a real and valid loan ? Reason I ask, some scam people, actually have a company issue loan, (not real bank) and record it, then they foreclose and chat people out of property,
Not a common scam but has happened.
I will assume you did not record the contract on the property, to show it as a claim.
But the owner of the property is still the seller, until the bank forecloses. Bank has no claim till foreclosure is complete
How much is your contract for ? Less than the one million
Property appraiser values home at $800,000 US Bank is legit and gave Million dollar loan because past owner only owed 186,800 on property. Did not know about recording contract on property to show as claim. How can I if I only lease option with another party holding warranty deed, which in fact might be fake. My contract is for 350,000. Please any advice on what I can do to keep me and my children here. How long is eviction process once bank forcloses on original owner. So confused, I don't want to be homeless.
Can I stake claim to this property in any way since I have money invested in it, even though I might have been scammed. Also does the original owner who took out the loan of Million dollars still own property until foreclosure is official. How long is eviction process if I have to move after house is forclosed on.Quote:
Originally Posted by AK lawyer
Let me get this straight. Person x has a warranty deed giving them ownership of the property. Person x entered into a contract with you to sell you the property for $350,000. Person y, supposedly the original owner, in the mean time took out a $1million mortgage on the property which is currently in default.
So the first question is whether the warranty deed was recorded. If it was, then the bank was defrauded and has no legal interest in the property, since person y had no interest in the property that they could legally mortgage. In that case, you may be able to lay claim to the property.
However, if the loan is valid, then the warranty deed isn't and you were scammed by person x. It means you will have to give up the property, but you have a case against person x to recover your money.
In either case, you really need an attorney to sort through this.
On the other hand, did you really think you could buy an $800,000 property for $350,000? This didn't raise alarm bells for you?
The original owner, as I understand you, sold the property (which was subject to a mortgage) to someone who "has a warranty deed of $186,800.00". How much he paid for this deed is relatively unimportant. He owns the property as I understand it..Quote:
Originally Posted by madeline50
You have a lease from this person, with an option to purchase. Yes, if you like you can exercise this option and buy it outright from the current owner. How much have you paid out so far, and for what, rent or part of your purchase price?
No, the original owner doesn't own it; the person who paid the $186 k for the deed and has leased it to you, does, as I understand what you are saying.
The length of the eviction process will depend on a lot of things. Here in Florida, for example, where I review eviction cases every day, they commonly take several years or more, although it can be as soon as a few months. Where are you?
So let me get this straight... if original owner of house took note out with bank in 2007 (Which she did) and then in 2011 signed a warranty deed with the man we purchased it from then the bank holds title to the home. The man we purchase it from holds no stake in this property what so ever and our deal is null and void. Correct ?
That's a different story. If the note existed at the time the warranty deed was issued, then the recipient of the warranty deed was defrauded, because a warranty deed is supposed to convey clear title. Since the note would have been a lien on the property it could not be conveyed with a warranty deed unless the note holder agreed to transfer the lien.Quote:
Originally Posted by madeline50
So yes your deal would be voided because he had no right to sell you the property. Now if you can prove he knew that, you can sue him to recover what you paid. Otherwise he's a victim too and suing him becomes much more complicated. He would have to sue the original owner.
If the original owner gave a warranty deed while there was a lien, then he could be guilty of criminal fraud.
The grantee under the 2011 warranty deed presently holds title, subject to the 2007 note.
The '11 grantee can ask his title insurance company to make him whole, assuming he did purchase title insurance, and the '07 mortgage was not listed as an exception on the policy.
I'm not so sure. A lien prevents a property from being transferred until the lien is satisfied. Offering a warranty deed when there is a known encumbrance would be fraud.Quote:
Originally Posted by AK lawyer
But this is now a very complicated situation which I think the courts will have to unravel. One thing I would suggest is the OP register the contract with the county. To try and protect their interest. And get a lawyer.
How can that be if the bank gave a note for #1 Million to owner, you would think the bank owns the house. What if our man did'nt purchase title insurance. And what do you mean by "subject to the 2007 note"Quote:
Originally Posted by AK lawyer
No, a note doesn't convey ownership to the note holder. The note holder maintains a lien on the property, but not ownership.Quote:
Originally Posted by madeline50
If the buyer didn't purchase title insurance he was foolish. But it means he has to fight any title claims on his own dime.
Also, I'm a bit confused, in your original post it seemed like the original owner took the $1 mil loan AFTER he conveyed the warranty deed. But if it was before, then that loan is an encumbrance on the property so any transfer of the property would be subject to that loan.
Original owner of home took bank loan of $1 Million in 2007, then I believe a few years later took off leaving house vacant . Our man is saying he got this house at a bank auction, but had a signed warranty deed with original owner in 2011 (figure that out). We came into picture last month and did lease/purchase agreement and now were getting bank papers and BSO knocking on our door telling us we've been scammed. But at the same time BSO is not sure of the bank situation either, so we are trying to figure this situation out on our own, because we do not know who to believe. BSO (Broward Sheriff Officer) is confused also, but told us not to make any more payments until they figure this out. However our man is filing for eviction on Monday.
Get an attorney. Immediately. If they file for eviction you will probably have 90 days to move but you also need to find out if you can get back any of the money you paid. You're not going to be able to do that on your own. There are way too many things going on here for you to do this yourself. So get an attorney.
First, have you seen this warranty deed? Has it been recorded with the county?Quote:
Originally Posted by madeline50
Second, did you do a title search to determine whether there were any encumbrances on the title.
Third, what bank papers are you referring to? What bank?
Fourth, are you in contact with the person you purchased from? Does he have any proof that he purchased it?
I agree with Lisa, as I have been saying, you need an attorney NOW! The fact that he has (or claims to have) a warranty deed from the former owner contradicts his claim of purchasing the property at a bank auction. If he did the deed would have come from the lienholder, not the former owner. My suspicion is also that you were scammed. Because it makes little sense that a legal deed could be executed while there was an outstanding lien.
On the other hand, if it is a scam, then why would he risk going to court for an eviction.
One last point, I don't disagree with stopping payments, but you should be putting those payments into a separate bank account so you can show the court that you are prepared to make the payments, but stopped because of the confusion about title.
"Our man" is the man who made a lease-purchase agreement with you? If so, are you in default of that lease? If he is trying to evict you, he has to give you 15 days written notice (Broward County; so I assume you are in Florida) before he can do so.Quote:
Originally Posted by madeline50
Lisa mentioned 90 days. That would be the federal law which protects renters after the bank or whoever bought it at a foreclosure sale. Has a foreclosure sale happened yet?
The more information you give us the more confusing it gets. As the others have said, get yourself an attorney IMMEDIATELY, if not sooner.
Yes we have copy of warranty deed (dated 2011) and it was filed through the Broward County property appraisers (that is the man we purchased from). The bank that hold the Million dollar mortgage is {removed} which was originally filed with previous owners in 2007. Just to remind you the original owners signed the warranty deed with the man we purchased from in 2011.
I removed the identifying info because that is against the rules of this site.Quote:
Originally Posted by madeline50
Did you check with the county Registrar of deeds to see if it has been recorded with the county? Have you consulted an attorney as we advised?
Can not afford attorney at this time hoping to get answers to help us through this website. Sorry was not aware that I could not post names on this website, thank you for deleting. Going right now to county registrar of deeds to check it out. I have only been on Broward County Property appraiser website and Broward Records.org
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