I'm a Real Estate Broker here in North Carolina. I have a Real Estate client who purchased a home as an Owner Occupant using FHA financing. My client couldn't speak English and had to use an interpreter to close the transaction. The interpreter was assigned by a local bank. Three months after closing the interpreter approaches my client with a piece of paper and told him he needed to sign it in order for hm to obtain financing for a home. Little did he know that what he signed was an agreement to transfer his home to the interpreter as long as the interpreter made all of the mortgage payments on time. (Contract for Deed) The home closed in September of 2010 and the interpreter took over his property in December of 2010 and has had possession of his property ever since until a court recently awarded possession to his wife who received the property by way of a Quit Claim Deed. Keep in mind the interpreter hasn't made payments on time under his fraudulent agreement and my client received several foreclosure notices during this period. Based on what I've been reading in these forums my client violated the FHA Owner Occupancy requirement because he never lived in the property, although unintentional. My question is can the Bank still foreclose because the interpreter filed suit to regain possession of the property under his fraudulent agreement? Obviously fraud has occurred, but my client is well outside the three year statute of limitations for making a charge of fraud and it would be his word against the interpreters.
Obviously you want to ask an attorney. Horrible situation.
@Jessie Brown I'm having a tough time accepting this story as presented. It sounds like you are saying that your client bought a house to live in it, then signed a piece of paper and stopped living in it and didn't think anything was wrong. That doesn't add up.
Nothing the borrower does, or anyone who got title from them does, can stop the lender from foreclosing, as it should be.
@Jessie Brown Whether that story is true or not, unless you are also an attorney at law, you shouldn't be giving legal advices to your clients. I think the best way to help your client and your self is to refer them to a real estate attorney.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing