New To Investments Please Help Me !
I recently purchased a 4 unit property and defrauded by seller. He made the tenants sing the blank lease papers and later inflated the rents.
Now I am not able to pay my mortagage. this is my 1st property. Please send me your sugessions how to deal with this.
file suit against the seller and if the brokers knew than them too...
Your appraiser should have based their appraisal on the "economic rents" not what was allegedly being collected so the unit should have been appraised correctly.
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Call experienced RE lawyer NOW.
Jim
Hey Sri, be careful not to throw good money after bad! Im referring to pursuing legal action and not paying your mortgage. I also didnt understand how the rents could be so far off that you are missiing payments. Was the lease the owner showed that much above the market rate? If the tenants arent paying any rent, then you should give them the boot also....i never could see the value of non-paying tenants? If its possible that market rents can pay the mortgage, then keep your property. If market rents cant pay the mortgage....then you are correct to pursue legal action and lose the property.
Hi Guys thanks for all the responses, I feel like someone there behind me to advise. Yes I did spoke to the attorneys they said sue all involved, including the real estate brokers. Yes I have all the proof from tenants which tells about their monthly payments. On other hand Iam worried about my credit if I do
foreclosure, it will be damaged permanently
Thanks again
Actually i hate saying this but your credit being damaged could be grounds for damages in your suit...
the nice thing is that the brokers all have E/O insurance and will settle as fast as they can if you have a good case...
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Let the bank foreclose. The new owners will have to evict. This will give you time to save money to rent a place.