PLEASE HELP! 2 WARRANTY DEEDS ON 1 HOUSE!
A mortgage broker helped us get a equity loan so we could start real estate investing. He said for $5000, he would teach us everything there is to know about the business. Well, he wasn't as good or wealthy as he said he was. We found a house and it took him 2 months to close on the property! After this we demanded out $5000 back. He said we were crazy. Then he said he wanted half of the profit off this house we just bought. We said no way, so he said if we didn't do it, he would put a lien on the house so we could never sell it. The next day, I talked to an attorney and she said he could put a lien on it, but it wouldn't be valid, but we would have to take him to court to take off the lien. So we felt we were stuck.
We reluctantly agreed and he said he would have his partner draw up a contract. Well, his partner met my husband at a notary and shuffled papers in front of him. My husband asked what all the extra papers were for and he said they were "legal mumbo jumbo". Well, 2 days later, we showed them to a friend of ours in the real estate business and he said, "oh my god, you just signed over the house for a buck!" Well, what this guy did was make up a contract for a warranty deed saying that my husband and these 2 guys were part of a land trust.
They said it was an instrument in ensuring their portion of the profits. Mind you, these 2 men havent put 1 red cent into this house at all. We were so mad at the fact that this warranty deed was never explained when asked about. Plus the fact that my husband signed these papers AT ALL.
So our real estate friend told us to beat them down to the courthouse and sign the warranty deed over to me (Its all in my husbands name). He called it "first in line."
We went down and recorded the deed in my name on April 18th. These 2 frauds didn't record it till June 3rd.
So what's going to happen when we sell the house?
Is their deed going to be invalid because I recorded the deed first???
We don't want these con men to get any money out of this house!!
We talked to our title company and they are not really sure about it. We have talked to a real estate lawyer who really wasn't intrested in it because there wasn't much money involved. Plus we can't afford a lawyer. So we are kinda up in the air.
Does anyone have any advice????
BTW, I turned this mortgage broker into the Texas Savings and Loan Association. They are investigating.
I hope they go on our side.
Thanks!
HP ^i^ [ Edited by HeavenlyPresence on Date 06/25/2003 ]
Please??? Anyone???
^i^
Hi HP,
You might also make reports to the following:
Texas real Estate Commission
http://www.trec.state.tx.us/
Texas Attorney General
http://www.oag.state.tx.us/index.shtml
Best of luck,
John (LV)
Thanks for your response.
I have already contacted TREC, and they forwarded me to Texas Savings and Loan.
They are investigating.
I did forget about Texas Attorney General. I'll file a complaint with them.
^i^