Check out some similar questions!

josic · Feb 4, 2009, 05:54 PM

Real Estate Gone Wrong:

I have gotten myself into a big mess regarding real estate and here goes:

In 2005 I was working for a man and he was buying houses right and left and selling them trying to make profits. He had taken as much as he could out of his houses so he could buy more. Too many houses were showing on his credit report so he couldn’t buy all the houses he wanted. So, he asked me if I would buy a couple of his houses and then he would buy them back in a year or so. So we went through the process and the houses were signed over to me. We also signed a note that he was responsible for all mortgages, taxes and so on till he decides to buy these houses back for the amount that is owed. He's been paying on these all along. One of the houses sold in Sept, 2006. He came up to where I live to get power of attorney so he could sell the house. I’ve been sick with thyroid cancer for a couple years so I haven’t been able to do much of anything. Well the one house sold for $229,000 and what happened somehow he only paid the first mortgage and the 2nd mortgage for $40,000 is still on my credit report. I asked him what happened at first he said he didn’t know what I was talking about. I told him he’s paying a payment of $340 or so each month still for that second mortgage. He then remembered and said he spent the money on other things, so he pocketed around $70,000. How can you sell a house and get away without paying the second mortgage. I am so upset about this. That particular house is up for sale again and neither the real estate company that is trying to sell it or the person that's trying to sell it knows that there is a 2nd mortgage still owed on it. I called the Loan servicing agency that has the 2nd mortgage that's listed on my credit report and they don't seem to care that there carrying a 2nd mortgage loan in my name with the house already being sold. Then the second house is still not sold. $160,000 is still owed on that. He calls me today and tells me he can’t pay anymore on the house or the second mortgage for the house that was already sold. He says he’s broke and that there my responsibility because there in my name. I’m just devastated. I’m on disability and I just don’t know what I’m going to do. The one house has a $1300.00 a month payment and the 2nd mortgage for the house that was sold is $340 or so a month. I know I did a stupid thing by transferring these houses into my name. I just trusted him. He was a friend at one time. Lawyers cost money and beings these are in my name, I just don’t know what I can do.

Lowtax4eva · Feb 4, 2009, 06:11 PM

Do you have any papers from him saying he will pay the mortgages on these homes? You might have to get a lawyer despite the costs

Fr_Chuck · Feb 4, 2009, 06:35 PM

You will need an attorney, but in the end, you are liable first and the 2nd mortgage company is going to come after you.

Was the 2nd mortgage actual filed at the court house as a lien, or was it a personal loan used for real estate ?

But at the end, you will end up paying, and having to sue him for the money based on the paper work you have.

Also the current owners of the property, needs to be aware of that lien, it may cause a issue on the validity of the last sale if there was fraud

In fact this person may be doing some illegal things, along with the moral issues, so you seriously, very very seriously need an attorney

josic · Feb 4, 2009, 06:44 PM

Originally Posted by Lowtax4eva

Do you have any papers from him saying he will pay the mortgages on these homes? You might have to get a lawyer despite the costs

He had a notarized note made up that said he was responsible for both mortgages and taxes and such till he deceided to buy the houses back from me.

josic · Feb 4, 2009, 06:47 PM

Originally Posted by Fr_Chuck

You will need an attorney, but in the end, you are liable first and the 2nd mortage company is going to come after you.

Was the 2nd mortage actual filed at the court house as a lien, or was it a personal loan used for real estate ?

But at the end, you will end up paying, and having to sue him for the money based on the paper work you have.

Also the current owners of the property, needs to be aware of that lien, it may cause a issue on the validity of the last sale if there was fraud

In fact this person may be doing some illegal things, along with the moral issues, so you seriously, very very seriously need an attorney

The house that was sold in 2006 were financed through a Loan servicing agency OCWEN. The first and second mortgage was through them. The first mortgage was paid off but he didn't take care of paying the 2nd mortgage with them.