| This has ugly all over it.
What is the name of your state? Washington DC
In 2006 I offered to help a coworker out of a jam. She lived in DC in a townhouse owned by her mother. Her mother had fallen behind in the mortgage payments and was about to be foreclosed on. My coworker wanted to buy the property but due to bail out restrictions she was not allowed to purchase it from her mother. I offered to buy the property and then in turn sell it back to my coworker. I have my own home in Maryland with a 1st and
2nd on it. At the time I wasn't even sure if I would qualify for another mortgage due to my debt to income ratio.
My coworker found a mortgage broker who was able to get a loan for me. Here is the first ugly part. The appraisal came in at $245k. The amount owed on the property was $60k. The loan was for $180k. I was told that this was the only way they could get the loan approved and that the seller (my coworker's mother) would give her daughter the downpayment to buy it back from me from the proceeds. Further she would agree to make the payments on the mortgage until it was sold back to her daughter. The house was old and in very poor condition. I couldn't believe it appraised at that much. Are smelling scam here yet?
With some reluctance I agreed to the deal placing my trust in my coworker that she would hold up her end. The loan terms are atrocious but as I had no intention of keeping the property for more than two months I signed them.
Two weeks after we settled my coworker split to North Carolina with her kids and I haven't heard from her since.
I listed the property with a realtor but was unable to sell it. Due to it's poor condition, location and the market downturn it will not bring anywhere what is owed on it.
To her credit, the mother has made every payment and paid the taxes on it to date. But she has informed me that she will not continue to do that into 2008. Why should she?
When I reviewed the paperwork I signed so quickly I noticed that the loan and the deed were written as if this would be my primary residence. This is fraud and since I signed I am complicit.
The property has been vacant for almost two years. It needs to be gutted. I cannot sell it, I cannot make the payments. I have looked into short sale and will probably not get enough for it for the lender to accept the sale.
My realtor has suggested that I consider bankruptcy. I don't want to do that.
I need to know what other options there might be. I have heard of a Deed in Lieu of Foreclosure. Could I do that?
Do I have a case for predatory lending or fraud?
Please don't tell me how stupid I have been. I am quite capable of beating myself up over this and have been doing just that since the whole deal fell through.
Last edited by suzweb; 01-08-2008 at 12:16 PM.
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