Legal Question in Real Estate Law in Texas
Payments were made on home, but not made to the mortgage holder
Two years ago I purchased a home from the owner with an owner finance. We signed a wrap around loan agreement. We made payments on time each month that included the insurance and taxes for the property. Last October the man we purchased from wanted us to tell someone that we were 3 months behind. I would not comply, as this was not true. We received a call from the mortgage company that they were foreclosing. The mortgage company allowed us assumption, but in the process, we lost approx. $10,000 of monies that were not paid and that we are now either repaying or have lost. The man we purchased from promised to repay every penny, but has since recanted. What is our best recourse?
1 Answer from Attorneys
Re: Payments were made on home, but not made to the mortgage holder
You can sue the seller for the money you paid under the wraparound note that he was supposed to pay to the mortgage lender and did not. You can sue for attorney's fees and costs as well. The big question is whether he could pay any judgment you take agianst him in the suit.
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