Am selling a house, it was sold for $50,000. At the signing yesterday, the documents say that the house was sold for $63,000. I asked about it, and the broker said it was "just fluff" because the buyer couldn't get a mortgage without inflating the price.
We were expecting to get about $10,000 after everything was said and done, but we're only getting $3150, yet the same paperwork says we're getting over $21,000.
The buyer in this case has been, for the last 7 years, on a verbal lease to pay all bills on this house while he lived there, until he could get his own mortgage. Upon serving him with a 10 day eviction notice, he decided he wanted to buy the house.
He hasn't paid the trash since 2002, is always late with the mortgage payments (in my husband's name!!) and the remaining amount on my husband's mortgage should have been only around $15,000, but due to all the late payments from the lessee, it ended up being $34,000.
Any advice? Anything illegal going on with the sale?
2007-08-01 03:04:15 · 11 answers · asked by NONAME 2 in Business & Finance ➔ Renting & Real Estate
Thanks pepsi,
This wasn't my house, by my husband's. He signed the papers, and then started asking questions.
2007-08-01 03:10:16 · update #1
This house has gotten my daughter cut off from SSI because her step-dad (my husband) owns it, and it's counted as a resource. The broker said he will send us new paperwork showing the $3150 we're getting, which is basically a new set of the papers recieved at the signing. This just sounds so fishy to me.
No, my hubby was not represented by an attorney, he thought he could trust these people as he's worked with them several times before.
2007-08-01 03:12:51 · update #2
The tax issues are a problem. I'm a tax preparer, and I know all about capital gains tax and how it can screw up a refund. Again, the broker said he is sending us a new copy of the forms to "show SSI" and "for the IRS" showing the gains of $3150.
2007-08-01 03:18:20 · update #3
Yes, this is mortgage fraud. I would find a lawyer and if you haven't gone through with the sale yet, or could back out of it, I would. You could end up being sued by the bank or whoever is lending the money on this deal.
2007-08-01 03:08:30 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Bottomline, the agent AT LEAST is guilty of FRAUD. Quite possibly the mortgage broker and title company are also involved.
Not gonna sit here and say you should have known better. many good people have had this happen to them. You trusted a professional that is licensed and you have little experience in dealing with these type of transactional details.
Depending on the state that this occurred in - depends on what regulatory agency governs real estate agents and mortgage brokers. Start my sending an e-mail to the agent, going over everything that was promised to you - different paper work - why the sales figure was higher than the 50K. Why the payoff was higher etc. Then contact your state attorney generals office.
File a complaint against the agent. Contact the mortgage lender - they need to be aware that mortgage fraud MAY have occurred. The lender will investigate and they will determine there recourse. But do the right thing and let them know. You did not do anything wrong don;t be scared to call. You didn't sign the mortgage at the closing table JUST the settlement statements (HUD-1)
I live in Tampa, FL and just yesterday an investigation was opened by the county for similar selling tactics.
Hang in there
2007-08-01 04:05:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It sounds like you already went through with the sale. If the bottom line amount to you was incorrect you should have walked out of the closing and hired an attorney to review your documents. It sounds like you paid all of the late fees for the mortgage, taxes, trash fees and other charges. This is a typical charge to the seller but in this case it sounds that the purchaser was to pay these fees.
If you haven't yet closed, I would get a copy of the HUD-1 statement. Take a very close look at what you were charged. If you do not understand it, or cannot resolve the differences with the purchaser, then take it to an attorney for review.
As for the inflated amount, it sounds like the mortgage broker simply increased the sales price and the amount of rent that was applied to make it appear that the purchaser had a larger down payment. As long as the house appraised for the $63,000 that is not really a problem because the equity is there.
P.S. If you did close on this transaction already, you may have some tax issues at the end of the year also. You will be taxed on the total received even if it was used to pay those outstanding debts.
2007-08-01 03:10:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The other posters are correct. This is clear mortgage fraud. If your husband was expecting $21,000 out of this sale, why on earth did he sign the papers (if he already has done so) with only a $3150 proceeds check. I gather that all these assorted late fees were paid by your husband out of his proceeds check.
You have a real mess on your hands. If this deal is already closed, you may well be too late to do anything about it. I would contact an attorney to see what can be done.
2007-08-01 05:00:20 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
You need professional advice. Did you have an attorney at the closing? Can you read and understand all the documents from the closing? If it says you should get $21,000, then you should have insisted on getting 21,000 at the closing. It may be too late. The time to stand up for your rights is before or during the closing.
2007-08-01 03:09:46 · answer #5 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
First you decrease fees of activity to make borrowing greater competitively priced, then make the greater competitively priced pointless with the aid of lending larger and better earnings multiples to those who won't be able to arise with the money for to pay off, and convince them that they are "saving" money on hire, and "making an investment" for the destiny. Lending human beings money they don't have will advance the quantity of money interior the housing industry, ultimate inevitable to inflation, and tempting sources brokers to make unrealistic valuations. The severe value urges human beings to purchase, as they think of the value is barely going to flow up and up and by no skill get from now on competitively priced, and makes them sense stable approximately "possessing" a powerful asset. of direction the valuables agent gets a value and needs the value of the valuables to be unrealistic. the difficulty is that as wages are shrinking and unemployment starting to be, fewer human beings can arise with the money for to purchase. Is there any factor thinking your house is properly worth a ridiculously exaggerated value if no person can arise with the money for pay it? no longer in all probability.
2016-10-19 08:32:26 · answer #6 · answered by zeckzer 4 · 0⤊ 0⤋
This is FRAUD!
Immediately seek the advice of an attorney. It appears that you closed on this deal yesterday, but you should act fast and contact the lender involved.
2007-08-01 03:11:46 · answer #7 · answered by Mortgagemom 3 · 0⤊ 0⤋
I would not sell it to him.. But, if you sell it to him, who cares what happens after that. Take your profit and move on.
Take him to court only if you can prove all of the things he has not paid....
Kick him out and start over...Renters do not care because they do not own the place..
I have had some good renters and bad ones...
2007-08-01 03:10:56 · answer #8 · answered by James 3 · 0⤊ 0⤋
So you already sold the house? If so, not much you can do now, but an intiial consultation with a lawyer is free
2007-08-01 03:30:03 · answer #9 · answered by Anonymous · 0⤊ 0⤋
It does not sound good. Who did the closing (title company, attorney)? Go back and ask them to explain it to you. I don't know what recourse you have, if you have already signed.
2007-08-01 03:18:42 · answer #10 · answered by ? 4 · 0⤊ 0⤋