real estate - deed of trust

Bothell, WA Viewed 131 times. Posted about 1 year ago in Real Estate

I sold my house approximately a year and 1/2 ago. I was approached by a company that buys fixer uppers, and they offered my a good price. However they convinced me to move out so they could re-hab it and use the improvements to enable them to get a greater value on the house for mortgage purposes. It became apparent they never intended to purchase the house, but to turn it around for profit. The 'buyer' who was brought in from the start, and insisted she wanted to live there because of the school district was not able to qualify for the mortgage, and they asked if they could subsitute another party, which I agreed to. They then wanted me to do a contract for $30,000 to be due in 2010, I consulted a real estate lawyer at that time, asked him to advise me on the final contract and sales papers. He found errors, where they had deliberately changed the wording on the deed of trust, so they could default and I would be out, when I had been told both by the lawyer and the people I was dealing with that if Jason (buyer) did not pay, I could foreclose on the property. The lawyer had them change the wording so it was correct.
Now a year and a half later, I find that Jason sold the house two months after he purchased it for it appears '0' dollars to a trust. The house is now abandoned ( the original buyer that could not qualify did move into the house and stayed there for about a year or more, supposedly making the mortgage payments to Jason) Now the house is abandoned, property in disrepair, the local courthouse advised me it was sold at auction on July 25th, 2008, that mortgage payments had not been made for over a year. I went back to see the lawyer I originally sought advice from, he sez I am probably SOL., as I was not principal on the mortgage the bank was, and if I could locate Jason, it would probably cost me more to litigate than it is worth. I am not rich, I needed that money, my deed of trust sez if he defaults he is liable for all my court costs, etc. Is there anything I can do at this point. - Is this your question? Add additional information

Answers (4)

Knute Arthur Rife

This attorney is licensed in Washington. Posted about 1 year ago.

I have to disclose straight away that this is not an answer because you have left out too many facts for anyone to answer you.

You were paid nothing for the house?
What was the trust deed securing? Do you have a promissory note? What are its terms? Who executed it?
Did you ever record your trust deed? Was it recorded before the security interest of the foreclosing entity? What entity foreclosed?

Can't even begin to answer you without that information.

kay

Posted about 1 year ago.

I received partial payment, I recorded my trust deed with Snohomish County Property Records as I was advised to do, I thought the property was securing it as the lawyer I hired to look at the papers said if I was not paid I could repossess the property, now when I go back to the lawyer to ask him about it, he sez it was a side deal, and I would have to sue the party that originally bought it from me. I can't afford to sue (he sez it would cost upwards of $30,000 to sue in superior court) my deed of trust sez the other party has to pay any legal fees incurred. I need the money from my house, so I am not sure how to proceed at this point.

Knute Arthur Rife

This attorney is licensed in Washington. Posted about 1 year ago.

There is still something screwy here. If you recorded a trust deed, it should show up on the property's title. You should have a title search done to make sure you are there and whether there is anything in line ahead of you. Do you have a promissory note that the trust deed is securing? I don't know what the attorney means by a "side deal." If you have a valid note secured by a recorded trust deed, I'm not following what the problem is with foreclosing.

kay

Posted about 1 year ago.

I don't know either, it is recorded with Snohomish County, however when it was foreclosed, the lawyer I went to for advice, and did not advise me against this, but appoved the papers, said the bank gets its money first, and they don't care about me. He sez that the promisary note (which sez Deed of Trust on itI) is a side deal with the original purchaser, and if he is broke I am out of luck, and it would cost as much as the promisary note to sue the pruchaser in Supreme Court, and if the guy has no money then I will be out even more money