Foreclosure forced by lending partner my credit? What can I do?
Posted in Real Estate Legal Discussion By Mechelle Lave, Tuesday, March 18, 2008.It's easy as a realtor to give real estate advice to a client, but when you're in a situation that seems so personal? I'm lost for words and solutions!
Ten years ago I bought my own home months after filing bankruptcy. Every year for almost 9 of 10 I've been keeping my bills down to a minimum Car and home only paying everything on time. Keeping my credit clean but rising! Five years ago I divorced my
husband and even on a single income, although struggling I managed to make all my payments on time.
About two and a half years ago,I lost my job but still had a little savings to buy me time for about 4 months. My brother (a realtor) told me that he needed someone to help him with his paper work, files and phone. He offered to pay me $1200/monthly to help him get caught up and organized. I gladly did so temporarily. Doing so, put me in a negative about $1100. monthly. But in the mean time I enrolled in school for real estate to eventually get my own license. I got my license in Dec 2005.
He knowing the struggles I was having, presented an offer that sounded honestly great to a naive person!
In Sept. 2005, he wanted me to buy one of his listings. He'll put the down payment in exchange of using my credit. He stated this will be "our" investment together, I thought that was fair enough! After a couple months of owning it with it not being rented out, it started to drain my savings intended for my own bills. After realizing this, I told him that I couldn't do this no more. He quickly offered to buy me out and make all the payments himself. He suddenly had a tenant.
Well needless to say....... Two years later neither has he paid me off, but when I went to refinance my own home to pull some money out to pay off my bills, keep some for this slow real estate market and buy me some time until the next escrow closed? I wasn't able to!! Since he so called took over this loan, he has skipped many payments then eventually caught up, but repeatedly abused my credit for the two years that he was responsible for this property. I had no choice to place my home for sale.
Because of this I eventually lost my home with about $100,000 in equity in it... I spoke to him about all these findings and even with evidence provided from the lenders until today he denies it. During the process of my own default and foreclosure I seeked legal counsel to try and save my home and was told that If I was to keep my home that the investment property would have to go and on top of that my payments would also be unfordable with the legal costs added.
(Oct 2007) Well after realizing that I wouldn't be able to afford the monthly payments? I not only lost my home in Dec 2007 but it was obvious that I didn't go through with the bankruptcy. I told him about that too. While going thru my own foreclosure I didn't know I'd be facing a double whammy all in a few months.
In December of 2007 I was notified by the bank for the investment property that payment for November was not made. I told him about it through email and voicemail. December again same thing. That's when I told him I was going to collect the payment from the Tenant and make the payments myself. He got to it and collected it first. So for November December and January he kept the rents he collected and refused to apply those payments intended for this property to that mortgage . He said he was keeping it to make up for some of his lost. Also broke the tenants lease by asking them to move out a month before the end date. (Because he knew that he wouldn't be able to collect that month's payment.)
Someone help me to understand my right's to this money intended to pay that mortgage payment. As a result of this I am now facing a second foreclosure. "All by myself." Help!!

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