We have been renting a house for 2 years now in Ga which we were going to buy after our credit got straighted

Asked by Freddie, Georgia Mon Aug 11, 2008

out. The person that got an investor to obtain the loan was collecting the monthly rent and never made the payments to the original owner. I just found out that 1 year after we moved in there was quick claim deed done and I believe it was to the person that I was paying the rent to. By accident I just found out that the house is now in foreclosure, the gentlemen is asking for the rent in aug which of course he will not get, he has moved out of state, and cannot give me that name of the owner. WE HAVE BEEN SCAMMED AND DON'T KNOW WHERE OR WHOM TO GO TO. THE police say there is nothing we can do since we are tenants. I have the original 2 year lease and the month to month we received last year in july. I have asked for a new lease and now I am being told that everything is fine the month to month will be ok but no additional information other than he would run a check on the property and let me know. HELP.

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Bob McClure, Other Pro, Walled Lake, MI
Fri Aug 15, 2008
i have done low risk, as well as higher risk, and tough mortgage deals since 1994....why not challenge me to get you financed?...iam licensed inyour state and 18 other ones.direct cell (248) 974-4444....bob mcclure- mortgage now- farmington, michigan
0 votes
Valerie McDo…, Agent, McDonough, GA
Thu Aug 14, 2008
Freddie;

Not a lawyer either. & I am not quite sure I understand who the "gentleman" is.
My real question might be whether the party collecting the rent was actually turning it over to the owner.

My first question to you would be, who wrote the original lease documents? If it was a realtor, then contact them for assistance. Was the paperwork done as a lease purchase? If you have that paperwork, dig it out. It will help to prove your situation.
If a realtor was involved, you could contact your local Board of Realtor's office & ask for help. They might have some suggestions.

The Quit Claim Deed should list the current owner.

You can find their contact information by going to your county's Tax Assessor's office. In most Georgia counties it will be adjacent to the office where you get your car tags.

A real estate attorney could look at your documents & give you some direction as to your alternatives. You do want a real estate attorney, not one in general practice.
0 votes
Don Tepper, Agent, Burke, VA
Tue Aug 12, 2008
OK. Let's take it point by point. Disclaimer: I'm not a lawyer, so this isn't legal advice.

Your question, and some answers:

We have been renting a house for 2 years now in Ga which we were going to buy after our credit got straighted out.
ANSWER: Did you have a right to purchase the property? For example, an option, or a purchase contract? You might have called it a lease-option or lease-purchase. Or land contract. Or contract for deed? Anything that committed one of these parties to sell you the property? If not, you're out of luck. If you did have something in writing, then maybe you have something to go on.

The person that got an investor to obtain the loan was collecting the monthly rent and never made the payments to the original owner.
ANSWER: It sounds as if the intermediary was either doing a blanket lease or was doing a sandwich lease-option. I can't tell from your description. What you're describing though (to the extent I can understand it) is a dispute between those two parties--the one collecting the money from you and the person who was supposed to be receiving the money, but didn't. I sympathize. I lost $15,000 in a transaction sort of similar to yours. I put up the money. The intermediary was supposed to find a tenant and collect rent from the tenant, then pay me. The intermediary never bothered to find the tenant. Slightly different scenario, except the one party kept all the money without forwarding it on.

I just found out that 1 year after we moved in there was quick claim deed done and I believe it was to the person that I was paying the rent to.
ANSWER: It's a QUIT claim deed, not a quick claim deed. What that means is that one party relinquished whatever ownership rights he had in the property. If the deed was recorded (which it should have been), you can check at your city or county courthouse to see who owns the property now. Though I don't understand the whole process you're describing, I'm guessing the person sold or dumped the house on the other party.

By accident I just found out that the house is now in foreclosure, the gentlemen is asking for the rent in aug which of course he will not get, he has moved out of state, and cannot give me that name of the owner.
ANSWER: I'm guessing the "accident" was a notice of foreclosure or default mailed to you or posted on your door. And you're mighty generous calling one of those parties a "gentleman." Sounds quite the opposite to me. However, you do owe rent to the owner of the property. I already described how to find out who owns the property: Check the records at the city or county courthouse. You're leasing from someone, and whoever that someone is, he can have you evicted for nonpayment of rent.

WE HAVE BEEN SCAMMED AND DON'T KNOW WHERE OR WHOM TO GO TO.
I'm tired of the word "scammed." Maybe you have been, and maybe you haven't. It depends on the type of arrangement you had (straight lease, lease-option, etc.) and, beyond that, any provisions of the lease-option, if that's what you had. Since you're not sure who owns the property, and you may have only been a tenant, and you've failed to pay your August rent, you haven't justified your charge of "scam" yet.

THE police say there is nothing we can do since we are tenants.
If you had the right to purchase (through an option, land contract, purchase contract, etc.), then you had an equitable interest in the property. Again, I'm NOT a lawyer. But if you had an equitable interest in the property, then you do have standing. But the police aren't the ones to go to. Try the city district attorney's office or the county prosecutor's office.

I have the original 2 year lease and the month to month we received last year in july. I have asked for a new lease and now I am being told that everything is fine the month to month will be ok but no additional information other than he would run a check on the property and let me know. HELP.
ANSWER: If the lease provided that it would revert to month-to-month, then that's what you have. Both parties would have to agree to a longer (for instance, one year) lease. You have the option of giving 30 days' notice and moving; the owner (whoever it might be) has the right to ask you to move upon 30 days' notice.

Call up your city or county and ask for "tenant assistance." Then take all your paperwork down to them, have them look at it, and provide you some guidance.

Good luck.
0 votes
Debt Free Da…, , 85260
Tue Aug 12, 2008
What about the real estate department?
0 votes
Voices Member, , Canton, GA
Tue Aug 12, 2008
Freddie,

I am sorry to hear of your circumstance. This is a difficult situation and something that a Real Estate attorney can help you with. You need to know if you have any rights or not regarding this situation. I know the nicest group of attorneys that I am sure would be happy to give you a free consultation. Let me know if you'd like me to provide their information to you. :) Valerie 770-262-8480
0 votes
Tori Lawson,…, , Fayetteville, GA
Mon Aug 11, 2008
Hi Freddie,
Vicky is right and I would recommend that you speak with an attorney and have your original paperwork in hand, consults are free.
I wish you the best and am so sorry this has happened to you.
Web Reference:  http://www.torilawson.com
0 votes
Vicky Chrisn…, , 20176
Mon Aug 11, 2008
Unless you had a contract that entitled you to be able to purchase the property, you likely have no recourse. This scenario with renters is quite common - I actually blogged about it a few times.
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