Real Life Story of an Attorney who screwed up a Subject to deal

[Roger Paschal]

I was on the phone a couple of weeks ago with an investor who took the advise of his attorney who was not educated on Subject 2, 

The investor bought the property a little over 5 years ago, gave the seller $25,000 for their equity and took over the payments on the mortgage and the investor moved into the house as their own.

His Attorney never filed the deed, (5+ years ago) because the Attorney was concerned about the Due on sale clause, the seller knew this from day one and was also concerned about the Due on Sale Clause.

When the seller recently saw his name was still on the deed he jumped into action and sold the property because it was still in his name.

The Investor lost all their equity over $500,000 and is having to move. 

I bet the Attorney is real sorry this happened

Roger D. Paschal

AUTHOR · CONSULTANT · SPEAKER · COACH · INVESTOR

[Jay Hinrichs]

Was the deed signed and simply not recorded ?

if so the house belongs to the person who it was deeded to.. not recording the deed does not make the transfer invalid.. sure opens the buyer up to a crooked seller though.

something is a little off with this tale of woe.