Legal Question in Real Estate Law in California
Mortgage Broker Commited Loan Fraud & Took Proceeds From Sale
My broker helped me out of foreclosure & I owed him $28k. He asked me if I knew anyone with good credit, & convinced me to ''sell'' my home to my best friend, just on paper, so he could get his money back at closing. He took no documentation from my friend, had his accountant fraudulently state his income, financial info etc. He said he could get a great low payment loan for ''us'', so I could keep my home & do upgrades to property & actually list it for sale. He inflated the sale price & took the entire settlement of $113k into his own bank account. The mortgage ended up being $4400/mo, when he told me it would be around $1200, because my existing mortgage was $2200. He paid me out $26k,to do the remodel & pay the mortgage. He actually doubled my payment & now I don't own my home on paper anymore. My best friend isn't speaking to me anymore, as he is furious over being legally responsible for a $4k/mo mortgage,& needless to say, the $26k my broker paid me wasn't going to cover much. Last week, my broker tried to convince my friend to ''sign the home over him'' to ''get him out from under the loan.'' He kept $83k of my money & now the loan value is probably more than I can sell for. I don't want to sell it, & never did. What now?
1 Answer from Attorneys
Re: Mortgage Broker Commited Loan Fraud & Took Proceeds From Sale
You are in a real pickle; I probably don't need to tell you this. I guess you are still in possession even though there is a deed (?) recorded (?) giving title to the broker. There is fraud upon fraud here; you are the main victim, but you are also culpable to a degree as a participant in the phony loan application. A court can set aside fraudulent deeds and clean up this mess if the judge feels you have clean hands, but there is no assurance your case will conjure up enough judicial sympathy.
Who is the lender here? Most respectable financial institutions would smell a rat and not make a deal like this. Maybe the lender is a shark and the loan itself is illegal.
Your entire deal would have to be reviewed, event by event, paper by paper, to look for legal and ethical violations that could provide the loopholes or levers needed to pull you out and get a court to cancel the deals retroactively. Success cannot be promised.
I have a deal cooking with the Amador Central Railroad in the next couple of weels and will be in Ione, if that's where you are. Contact me if you'd like to discuss your case (no charge) while I'm there.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
