Legal Question in Real Estate Law in California

I live in Cali. I wasn't sure where to post my question and I will attempt brevity. I purchased two homes on a lot. One house was non-conforming. The City stopped allowing two homes on a lot years ago and the owners had to choose one house that they could not repair more than 10%, and eventually the house would get torn down. The sellers sold me the property representing the main house as the conforming in good condition, and the second unit as non-conforming, and needing lots of work. The sellers mortgage loan was through the same bank I got my mortgage loan through. The house was appraised at $210,000 and a termite inspedtion was conducted. Drywood termites were reported and damages to wood. The termite company quoted $3,000 to fumigate and repair wood members. On the day scheduled for close of escrow, the listing agent called and said there was a problem with the seller, but it was handled. A week later I was told Escrow closed but the seller had not vacated and would not allow fumigation until she was out. It was 10 days before I took possession. Three days after possession I discovered catastrophic termite damage by SUBTERRANEAN TERMITES. I tried to rescind but the seller left a phony address. The damage is so severe three general contractors recommended complete demo and rebuild of both houses. I learned later that to fund the loan, the listing agent had the termite company falsify information on the Termite clearance submitted to the lender, saying the repair and fumigation were completed. The escrow company had knowledge of the situation. Since then there has been much pointing fingers and denials of liability from all parties. BUT THAT'S NOT ALL�I discovered deliberate plumbing leaks in the bathroom walls. PVC was not glued. Roofing shingles were inside the walls to deflect water away from drywall. None of the appliances were operable, the plumbing in the laundry room was a prop and the drain for the washer went under the house, There were safety issues with the electrical system that was knob and tube, there was a automobile wiring harness in the attic to suppy electricity to areas of the house, the roof had eight layers of asphalt shingle and leaked like a sieve. The house had no load bearing wall and when pressure was applied to a wall it would shift the entire structure. The ceiling in the master bedroom fell in during a particularly hard rain. I do not believe the place is hooked up to the sewer, as sellers said it was. the sellers painted AROUND appliances rather than move them, landscaping was potted plants, and a few plastic ones. The sellers did not disclose an easement of 2400 square feet they granted to the neighbor, and three structures of the four on the lot, encroach onto the lot that is owned by the mother of the sellers ex-business partner, who gave the property to the seller a year earlier as a gift. The entire back yard of the house formerly known as the one in good condition, is an encroachment onto the ex-sellers mother also. I received the coupe de grace in the mail after I faxed a request for building permits and records. The sellers switched the address numbers on the two houses and represented the non-conforming as the conforming, and vise versa. The address the appraisal was based on is authentically the small house that needed lots of work, which was given NO VALUE by the appraiser. The seller represented the lot as being zoned and large enough to keep several large animals, but I have learned because of the way the structures are situated and the surrounding residences, NO animals can be kept. When the hazard insurance drove by the house they cancelled my policy and I had to get lender placed insurance, increasing the monthly payment by $300.00. The houses were uninhabitable, so I place a small trailer on the property to live in. I sent correspondence to the lender asking for forebearance because the added financial costs, and to inform them their collateral is not what they believed it to be. I received no response, only a notice they are going to foreclose. I have filed a complaint against the seller, the termite, Escrow, & listing agents for fraud, and was gong to include the lender for negligence. My question is, how can I stop the foreclosure? Thank You for your consideration�sinerely, assless in seattle.

Asked on 3/01/12, 3:54 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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The best way to stop a foreclosure is to request, then pay, any delinquent amount, including the lender's recoverable expenses to that point. The next best way, in your case at least, might be to find a basis upon which to sue them, or to join them into your existing suit by amendment, and obtain a TRO and then a preliminary injunction against the foreclosure. If you aren't using an attorney, you'd probably need to find one to do this right.

Answered on 3/01/12, 4:40 pm

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