Need advice on a foreclosure situation

[diver999]

What is the name of your state?What is the name of your state? North Carolina

About 8 months ago I invested in a company that claimed to help people get started in real estate investing. The way it worked was the company had a list of people who wanted to lease-option a property through them. The company would find a home and then have an investor purchase the home and the tenant would sign a lease-option agreement. Well I purchased a home back in June through this program.

The broker I went through told me that because of my excellent credit I could qualify with a no-doc application. We went with that. About three weeks after the closing the owner of the investment company was arrested by the FBI. Apparently he was running a very large scam.

Well I'm sure you can see where this is going. I found out the appraiser had inflated the house by more than 100K. I also found out that based on my income I never should've been able to qualify for this mortgage. The lender's investigator faxed a copy of the application to me. The broker had filled in fake information about my income and assets after I signed it. They also forged a fake rental agreement for my current property.

Well my first thought was to sell it but I couldn't as it was too inflated. I couldn't rent it for nearly enough to cover the payments. So now it's scheduled to go to foreclosure sale at the end of this month. A friend of mine that's a loan officer has contacted the lender to offer a short-sale. We're waiting on their response. In the meantime I received a letter from an attorney representing the original lender. The letter accused me of being part of the scam and knowlingly misrepresenting my income and intentions to live in the house and also about it being inflated. They told me I'd be responsible for any losses the lender incurred.

Now I just have to say I realize how stupid I was to do all this. This has got to be the biggest mistake I've ever made. I've already lost plenty of sleep over this so please, I'm just looking for advice. I don't need any criticism about all this.

I've accepted the fact that I'll have a foreclosure on my record if they don't accept a short-sale. I'll live with that. What I'm really worried about is being sued for the loss the lender has over this. Can they sue me for this? I mean I honestly had nothing to do with the fraud, at least I wasn't aware of it. And I didn't hire the appraiser. Shouldn't the broker be liable for the loss?

And what if they can and do sue me - what will happen to me? I've never been sued before. I don't have that kind of money. Will it just go on my credit as a judgment? Can they do anything else to me? What about my current property? I certainly don't have enough money to pay for a good attorney to represent me.

I appreciate any advice you can give me.

[HomeGuru]

Originally Posted by diver999

What is the name of your state?What is the name of your state? North Carolina

About 8 months ago I invested in a company that claimed to help people get started in real estate investing. The way it worked was the company had a list of people who wanted to lease-option a property through them. The company would find a home and then have an investor purchase the home and the tenant would sign a lease-option agreement. Well I purchased a home back in June through this program.

The broker I went through told me that because of my excellent credit I could qualify with a no-doc application. We went with that. About three weeks after the closing the owner of the investment company was arrested by the FBI. Apparently he was running a very large scam.

Well I'm sure you can see where this is going. I found out the appraiser had inflated the house by more than 100K. I also found out that based on my income I never should've been able to qualify for this mortgage. The lender's investigator faxed a copy of the application to me. The broker had filled in fake information about my income and assets after I signed it. They also forged a fake rental agreement for my current property.

Well my first thought was to sell it but I couldn't as it was too inflated. I couldn't rent it for nearly enough to cover the payments. So now it's scheduled to go to foreclosure sale at the end of this month. A friend of mine that's a loan officer has contacted the lender to offer a short-sale. We're waiting on their response. In the meantime I received a letter from an attorney representing the original lender. The letter accused me of being part of the scam and knowlingly misrepresenting my income and intentions to live in the house and also about it being inflated. They told me I'd be responsible for any losses the lender incurred.

Now I just have to say I realize how stupid I was to do all this. This has got to be the biggest mistake I've ever made. I've already lost plenty of sleep over this so please, I'm just looking for advice. I don't need any criticism about all this.

I've accepted the fact that I'll have a foreclosure on my record if they don't accept a short-sale. I'll live with that. What I'm really worried about is being sued for the loss the lender has over this. Can they sue me for this? I mean I honestly had nothing to do with the fraud, at least I wasn't aware of it. And I didn't hire the appraiser. Shouldn't the broker be liable for the loss?

And what if they can and do sue me - what will happen to me? I've never been sued before. I don't have that kind of money. Will it just go on my credit as a judgment? Can they do anything else to me? What about my current property? I certainly don't have enough money to pay for a good attorney to represent me.

I appreciate any advice you can give me.

**A: it was a scam. Now you need an attorney.

[diver999]

Originally Posted by HomeGuru

**A: it was a scam. Now you need an attorney.

Any idea how much an attorney would cost? Will they let me pay over time because I don't have hardly anything to offer right now?

[pojo2]

Originally Posted by diver999

Now I just have to say I realize how stupid I was to do all this. This has got to be the biggest mistake I've ever made. I've already lost plenty of sleep over this so please, I'm just looking for advice. I don't need any criticism about all this.

Oh come on, you had to know somewhere along the line this was all to good to be true so the first thing you do is take on some of the responsibility yourself. Unless you truly have an I.Q. of 5 you are NOT as innocent as you let on.

Good luck and you may find an Atty who works on a pay check to pay check basis. You may want to make sure that atty is present if and when the FBI knocks on your door after all the records have been gone over.

[diver999]

Originally Posted by pojo2

Oh come on, you had to know somewhere along the line this was all to good to be true so the first thing you do is take on some of the responsibility yourself. Unless you truly have an I.Q. of 5 you are NOT as innocent as you let on.

Good luck and you may find an Atty who works on a pay check to pay check basis. You may want to make sure that atty is present if and when the FBI knocks on your door after all the records have been gone over.

Do you feel better now? Did you get it all out of your system? Do you just search this forum looking for people you can kick when they're already down?

For your information I've already spoken with the FBI. I called them to let them know what happened and they are very aware of the scam. He took my name down and added it to a list he says is very large of people who this guy scammed. So thanks for your input.

[pojo2]

Originally Posted by diver999

He took my name down and added it to a list he says is very large of people who this guy scammed. So thanks for your input.

You are right there are sooooooooooooooo many people out there that go into things without the proper research and heck just good old common sense!

Well I'm sure you can see where this is going. I found out the appraiser had inflated the house by more than 100K. I also found out that based on my income I never should've been able to qualify for this mortgage.

Didn't you have a little built in beeper that told you you were way over your financial capabilities?

My point is stop acting so innocent, as stated, unless you do not have the mental capacity to be entering into legal contracts, you KNEW something was amiss.

Now get an Atty which of course might have prevented this mess if you had someone looking out for YOUR interests in the first place.

Do you feel better now? Did you get it all out of your system? Do you just search this forum looking for people you can kick when they're already down?

Nope merely call BS, BS when I read it.

A judgement means the person receiving the judgment starts looking for assets or employers and bank accounts. This is why you better find money for the Atty and NOW!

Oh and sometimes the posts are not just anwers to you but others who might come along contemplating such actions without benefit of good council!