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Long story and need HELP!

Posted on: 25th Aug, 2011 11:48 am
OK...here is my story and questions.

We listed our house FSBO and a lady from out of state wanted to buy it. She moved here with her children and due to some issues with her documentation that the mortgage company wanted, she took forever to get closed on the loan. As helpful as we could be, we allowed her and her children to move in with us until she could get the loan closed. (We couldn't move forward with the purchase of our house until she closed on our current one so we were stuck!)

Now, everyone has moved on and we have our house and she has hers. She came to talk to me one day and I just casually mentioned things that didn't seem just right. My husband was puzzled at how quickly she was able to get a judge's order to allow her children to move out of state and some other things. So, after more talking, she CONFESSED to me and my husband that she actually FAKED some of her loan docs to get the loan on her house!!! She was/is married and she made fake divorce papers so her husband wouldn't have to be at the closing to sign on her loan. She also make up child support income papers and a FAKE judgement to get some medical bills removed from her credit report. She said it was the only way she could buy the house!

Well, she lived in the house for 9 weeks with us while waiting on the closing, she asked my husband to do multiple repairs and improvments for her during that time and she didn't pay one dime of rent or utilities, other than groceries.

We have all been out for a month now and in our new home. She's harassing us saying that we didn't do promised repairs and we hid things from her. I finally had to get an attorney to stop her from bothering me but she wants to sue us for repairs and from hiding things WHICH WE DIDN'T DO! If we had things to hide from her, we wouldn't have let her live there for 9 weeks with us!

My concern is that the mortgage fraud that she committed will come out and if it does, what then? My husband and I had no idea she was doing such a thing. She was in contact with the lender from day one and she was the one who was faxing and emailing documents back and forth. We had nothing to do with that part. If she's caught, can her lender come back and make us take the house back? Someone had said they might retract the loan but I don't understand how that can be if the money has already been wired and my bank has been paid in full? This is all just a big mess all the way around. She has lied to everyone about everything and wants us to pay her money now to fix things. The contract we had wasn't perfect, but I made sure to put in there we would provide a home warranty, which we did thru AHS and no other warranties were written, expressed or implied.

I wouldn't even know who to go to about her mortgage fraud and I'm actually scared to death to even attempt to mention it to anyone. She already called a real estate attorney in my church but he refused to speak to her and told her that he was already representing us in this situation.

If it matters to anyone...we are in Alabama.

Thanks!
Hi Guest!

Welcome to forums!

Well... that's a really messy situation!! The said person has faked all the required documents. You should contact a real estate attorney and disclose these facts and he/she will guide you and let you know what legal steps you can actually take against her. If you win the case, then she won't be able to force you in doing any property repairs. If the warranty deed is legal and recorded at the county recorder's office, then the lender can't force you to take back the property.

Feel free to ask if you've further queries.

Sussane
Posted on: 25th Aug, 2011 10:12 pm
I am a little confused on how she could "force" us into doing any repairs??? She lived in the house for 9 weeks prior to closing, we fixed every single little thread that was out of place for her and the house was sold "as is" so I'm not worried about that part. She just keeps on harassing us and now I know about the fake documents. I thought the FBI did something about that and there was something regarding a statement under penalty of purgery?
Posted on: 26th Aug, 2011 04:58 am
I guess my other questions are when she is found guilty of mortgage fraud, what will happen to the house? Will the mortgage company foreclose on it, sell it, what? It has been closed for over a month and recorded at the clerk's office so that's all complete. Wire transfers are finished, etc. Such a sad situation!
Posted on: 26th Aug, 2011 09:41 am
Hi Guest,

You can file a complaint against that person with your local police department regarding the fake documents. The police department will be taking actions against her. It will depend upon the discretion of the mortgage lender whether or not they would foreclose the property and sell it off.

Thanks
Posted on: 26th Aug, 2011 08:50 pm
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