Legal Question in Real Estate Law in Washington

Losing our Investment Home

we bought a home from the bank prior to it going into forclosure as a friend of ours was losing it. She wanted to rent it for 2 years agreeing to buy it back when she got on her feet but rent it back in the meantime, still living in it. She has not made payments, ruined our credit, suing us now for the property, tied it up with a lis pendence & her lawyer is strong arming us to sign over title to her. We are in no position to come up with money to pay an attorney and no attorney will take the case here with the commitment we will pay when we win out of the proceeds of selling the house once she is removed - this has been going on for almost 2 years now. We are now getting ready to file bankruptcy but don't see how someone renting can tie our house up and although there was a Verbal agreement that she would buy it back, she can't even make monthly rent payments to us! We are tapped out to nothing and don't know what to do. My husband signed these sale papers in the emergency room 2 years ago when he had just suffered a grand mahl seizure earlier that day and was diagnosed with a brain tumor - he didn't even remember how he got home! But we don't want to play that card. Is there any ''hope'' for us? We just want to sell the house!


Asked on 1/12/07, 1:05 am

1 Answer from Attorneys

Elizabeth Powell ELizabeth Powell PS Inc

Re: Losing our Investment Home

My title to this answer could be "No Good Deed Goes Unpunished".

No doubt you have heard the phrase predatory lending going around lately; conversely, there is also an issue of predatory borrowing, and it sounds as though you may have fallen into this trap.

Now that you own the property, she sees you as the bad guy because you expect to get paid.

I hope somebody has explained that verbal agreements regarding real property (the part where she promised to buy it back) are practically unenforceable. The Statute of Frauds won't support verbal agreements re property.

On the other hand, you cannot use the Statute to perpetuate a fraud, either.

Of course there is hope. Especially if the other side has an attorney, you are in dire circumstances unless and until you lawyer up, though.

ANY real property in Western Washington has seen its value increase dramatically in the last two years, and I'm sure yours is no exception.

You need to call the bankruptcy question and decide one way or the other, because it will matter to any attorney that you hire.

The issue is that you want out, and she wants to stay. Has anybody filed a lawsuit yet? Likely it was an unlawful detainer, but it should have been an ejectment action (or quiet title if she filed).

I'd need to know more to give you actual advice; based on what you presented all I can really say is its time to lawyer up.

Hope this helps - even a bit -

Powell

Read more
Answered on 1/12/07, 1:28 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Washington