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Insurance Fraud and Double Jeopardy Disclosure

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New member
Hello, I have quite the dirty dilemma. My fiance and I had purchased a home in Missouri. Just moved from California in our dream home. A beautiful 1884 historical Victorian. The asking price from the seller was $87,900. We did not quite have that much, and agreed to the seller to pay her 70k and make payments of $1500 a month to pay off the remainder in one year. There were some things on the disclosure that we agreed to, that are secured by the deed, such as the balance owed and that we must provide homeowners insurance. We were told by the seller that we can use her insurance agency since she pays $138 a month and our rate should be the same, respectively - since her insurance agent is a personal friend of hers and will "do us a solid" [sic] This rate seemed unreal to me, because I had thought it was hard to insure Victorians. But we figured EVERYTHING must just be cheaper outside California or something. After moving in and getting ready to make our first payment, we asked for the phone number to her agency. She said that if we like, we could keep the insurance in her name, and just pay her if we like, just to make things "easier". This didn't feel right, so we of course declined explaining that we would rather have the policy in our name, so that our insurance could be legit. She then was adamant about us asking for her agent specifically when we call the Allstate office. We did that, but her agent was not available, so we were helped by another one. During this, we were verifying all the information that they had, and come to find out, the year of the house built was not correct in their computers. According to their records, they had the year built as 1908, taking the home out of the Victorian era, which ended in 1901. We explained it was the first house built in our town, is historical and there is material on its history in our town museum, city hall and in our local library. After explaining this we were told they would call us back. After getting back to us, Allstate said our home is not insurable because of the fact that it is a historical Victorian. This confused us. Couldn't understand why anyone would falsify info to insure their home. Come to find out, she was financing, which would require her to insure it. What was alarming is, she could take the house from us if we don't insure it according to the disclosure. So we looked for other insurance companies to insure us, and were shot down by all but one, which said they cover us for $8500 a year, for a 50k deductible, which wont replace an oak home with a 135 year old hardwood floor made from an extinct Canadian chestnut. So, we refused to pay her until she changes the disclosure. And she refused, stating that she would force us into disclosure, which would leave us with nothing. This woman is dirty. That's just one of many things she's done that is just flat out wrong. We've noticed quite the pattern with this "Cruella DeVille". She built an unsightly fence onto our neighbors property, claiming it was on her property line, as well as falsely advertise the house on zillow as having a fireplace. There is no fireplace. Plus our roof leaks. She said it was "restored". It isn't. Come to find out it's the same tin roof thats been on it since 1937. The thing is, if we pay her $1500 a month that means we agree to the terms and everything is copacetic. And she can take the house because we aren't insured. And if we don't pay, same thing, she can force a disclosure. We are damned if we do, damned if we dont. My question is, does this unethical woman have any leg to stand on? We are a young family, 3 kids, love our new town, our town loves us, we quickly became solid members of this community. I'm a volunteer fire fighter, my fiance is highly active and involved in our kids school - the works. We dont deserve this and we aren't your typical California folk. In other words, We aren't sue happy. But this is straight up WRONG! Any help is highly appreciated... ~ Anthony

Taxing Matters

Overtaxed Member
I don't have the benefit of seeing the documents involved in this deal. That's important. Take what you have to a civil litigation attorney in your state and see what remedies you might have. You had some warnings dealing with her at the start, it seems, that started making you a bit uncomfortable. You should always listen to those kinds warnings in your head and verify everything that the seller says, particularly about those things that seem off, before you enter into the deal.
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