Legal Question in Banking Law in Indiana

Is our mortgage legal ?

Hi Folks,

Our builder it turns out, is a crook. Great custom builder, quality home no complaints there. He has been indited for money laundering, fraud, etc.

Do a Goole search on Eric Tauer and Royal Haven Builders.

When we went to sign our mortgage papers we went to the builders offices. A guy from the bank was there. They had a stack of mortgages almost 3 feet high they were pounding through. This guy from the bank said ''If anybody asks who did this, say ''name deleted'' did it.'' My husband and I looked at each other, puzzled, and said we are not lying for anyone. And they both just laughed it off.

Well several months latter we found out what he was talking about - he had been fired by the bank a couple of days before we signed out mortgage. We also found out an escrow account was not set up, our title search failed to turn up 7 leins against the property (dating back to before it was even a subdivision) etc.

So how can this be a legal mortage if the person representing the bank had been fired by them ?

Thanks !

Lisa


Asked on 10/07/05, 9:40 pm

2 Answers from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Is our mortgage legal ?

When you ask if your mortgage is legal, I assume you want to know if you have to pay it. From your question, it looks like the loan was approved by an unauthorized loan officer for the bank. You may be able to rescind transaction. It's too complicated to evaluate by email, so you should call your local bar association for a referral to someone with experience in real estate transactions and creditors rights. Your title company will be responsible to pay the pre-mortgage liens, so be sure to put the title company on notice of your claim. Good luck.

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Answered on 10/07/05, 10:52 pm
John Bator Bator Redman & Shive

Re: Is our mortgage legal ?

Eric tauer and Royal haven builders are in a chapter 11 bankruptcy and Mr. tauer has been indicted for allegedly commtting large scale fraud. There are numerous banks involved and a bank officer was also involved in the fraud.

You may have a claim against the title company but even routine title claims have been swept into the bankruptcy. The trustee has been given broad powers and may be able to assist. You need to hire counsel preferrably one who is already familiar with the case so you don't pay too much tosomeone who has to get up to speed. Do not delay as there are time limits for claims

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Answered on 10/08/05, 7:59 am


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