Legal Question in Real Estate Law in Texas

Wrap Mortgage

My wife and I moved to TX when I accepted a new postion at work. We needed to find a home quick and decided to get owner financing on 205,000. We are now trying to get a traditional loan but the home has dropped over 40,000 in value. Other homes in the area have lost value as well but not 19%. The DFW area showed a 1.3% increase. I feel like I was taken advantage of, being a first time buyer. I am at a loss with what to do. What are my rights? Is this fruadulent? What is the possibility of renegotiating? Can a house be sold for 120% of is apraised value?


Asked on 9/18/07, 8:58 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Wrap Mortgage

Whenever one buys a house, they should perform "due diligence" and make sure they are paying the right price. The county appraisal district, zillow.com, and realtor.com are good resources. I call what happened, taking a "stupid pill" - no one can protect you from your own actions. Market value is the price a willing buyer will buy for and the price a willing seller will sell for. You signed a binding contract and created market value. If I were you, I would ask the seller if they will take the house back. If they won't take it back, then you have 3 options. 1. Find a buyer, 2. Keep the house and make your payments, or 3. Stop paying and allow a foreclosure to occur. You should talk to an attorney before taking step 3.

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Answered on 9/19/07, 3:45 pm


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