talk of forclosure, what can I do

[t_b]

What is the name of your state?MN
I with the convincing of a friend purshased a house using only my excellent credit score for a friend who was to fix it up and flip it in 2-3 months. We signed an agreement stating I would recieve $20,000 at closing and basically have no responsibitly or claim on the property. John and his company where responsible for mortgage payments, taxes, etc. and when the house sold he was to recieve all the profits. We paid $50,000 more for the house then what it was worth to get money back at closing to fix the house up. This money is now gone and the work is not complete. I have made one house payment out of my pocket and we are now 3 months behind, ruining my credit. It has been 8 mo. since the purchase and the mortgage company is talking forclosure. What can I do? Do I have a claim against my friend? What will happen if it does get forclosed on?What is the name of your state?What is the name of your state? MN

 

[t_b]

the ageement reads as follows

the agreement says
HNC management(HNC) is owned and operated by John C@#%^$&

HNC and Tracy B%*#@ have agreed that she will be the creditor for the address of 4611 Cushing Ave. Buffalo, MN 55313. Tracy will receive the amount of twenty thousand dollars($20,000.00) within seven to ten (7-10) business days from the date of closing. Tracy also agrees to fill out a full credit application and sihn all paperwork in regards to closing the sale of the property above. Tracy agrees to sign a Quick claim deed over to HNC after payment of twenty thousand dollars ($20,000.00) is recieved forfeiting any proceeds, present and future, from the property stated above.

HNC agrees to pay all outstanding balances for the property stated above. HNC also agrees to pay all mortgage(s), insurance, and taxes on a timely basis that will be stated by the mortgagor. Tracy will not be held liable for any liens, mortgage(s), taxes, insurances, closing costs, etc. Tracy will have no out-of-pocket expense in regards to the purchase or the sale of the property stated above.

This agreement is a legal binding contract and will be upheld in any and all courts of law.

It is signed and dated by both of us and is on his companys letter head.
The Quick claim deed was never signed, John didn't seem to be in to much of a hurry to have it signed and then when I found out what it was and I had already made one months payment on the mortgage (to keep it from going past 30 days) I told him I wasn't going to sign it. The reason my credit is getting ruined is because he has not made a payment in 3 months and I don't have the money to pay it.

 

[danno6925]

Wrong forum

Try the forclosure forum. At first glance, I would say that you shouldn't have purchased a house with someone who's credit rating wouldn't get the job done on his own. You now know why his credit score is in the crapper.

Finish the work (I can't imagine what kind of renovations you're doing that would eat up 50k in that amount of time) sell the house, learn the lesson.

The lesson is this:
Leave house-flipping to the folks on the Home & Garden TV Network.

 

[LindaP777]

What is the name of your state?MN
I with the convincing of a friend purshased a house using only my excellent credit score for a friend who was to fix it up and flip it in 2-3 months. We signed an agreement stating I would recieve $20,000 at closing and basically have no responsibitly or claim on the property. John and his company where responsible for mortgage payments, taxes, etc. and when the house sold he was to recieve all the profits. We paid $50,000 more for the house then what it was worth to get money back at closing to fix the house up. This money is now gone and the work is not complete. I have made one house payment out of my pocket and we are now 3 months behind, ruining my credit. It has been 8 mo. since the purchase and the mortgage company is talking forclosure. What can I do? Do I have a claim against my friend? What will happen if it does get forclosed on?What is the name of your state?What is the name of your state? MN

Post here for more responses; Mortgages, Refinancing & Foreclosure

My gut says John did not fulfill his obligation, so you need to step in and do whatever it takes to sell it & get out from underneath it (assuming you can get out from underneath the property - getting a loan for $50,000 more than the house was worth could have been a huge mistake - especially since the money is gone). I'm a real estate investor (flip houses or keep for rentals) and what I don't get is John experienced at this - if so, he wouldn't need you for a loan. If not, why would you do business with him?

If you get foreclosed on, your credit will be shot and there still a good chance you'll still be on the hook for the balance (if there is one) even after the house is foreclosed on and sold.