Subject 2 transaction gone south

Asked by debeale, Fort Worth, TX Sat Jan 12, 2013

I sold my house to a company that used a 'subject 2' transaction in 2007. They would take over making the payments and I would transfer the house to them. It was with the understanding that in 1 - 2 years they would finance the house and all proceeds would go to them. Well 2 years turned into 4 years and then they started making payments late. Then they stopped making the payments and haven't made any payments in 2 months. I tried to contact the company without success. I did contact the people who are in the house and explained the situation. They "bought" the house from the original company in 2007 and have their payment automatically withdrawn from their bank. So they're not the problem. I checked Tarrant County TAD web site and the people that are currently in the house are listed as the owners. My question is, do I have any recourse against the original company and what is the possibility of selling the house to the current occupants.

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Bruce Lynn’s answer
Bruce Lynn, Agent, Coppell, TX
Sat Jan 12, 2013
Time for an attorney.
Unfortunately we hear this way way to often.
Everyone gets taken in these kinds of deals.
Too late to stay away so your only course of action is to get an attorney.
0 votes
Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Sat Jan 12, 2013
I suggest you seek advice from a real estate attorney since your situation is fraught with scary stuff. I don't know what type of mortgage is probably still in your name. All agency loans have a "due on sale" clause. That means if a current borrower transfers title, the loan was required to be paid off, unless qualified assumption was an option. So a person who didn't follow the rules might be in hot water. That person really needs legal help.
Good luck.
Barbara Coker
NMLS#228545
100% Home Loans All Over Texas!
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Jan 12, 2013
HINT: why you ALWAYS need a Realtor to protect your interest.

1. You can't sell a home if the current resident is on the title UNLESS you have 2nd lien on the home?
2. Did you own the home without any mortgage to a company?
3. You would be required to research TAD determine what has taken place for the entire paper trail of transfer of title.
4. CONTACT an attorney ... however you MIGHT NOT have any recourse in this entire situation ONLY an attorney would know.

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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http://www.lynn911.com

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0 votes
I believe your input on Trulia would be considered as "advertising." You not only don't show the name of your Broker as required, you don"t show your own name !
Flag Sat Jan 12, 2013
Rick DeVoss, Agent, Ft Worth, TX
Sat Jan 12, 2013
Mr. Debeal,

Mr. Gimenez gave you a very good answer. The bottom line is that you have a very complicated situation, and it will require an attoreney to resolve it. Even though I have specialized in Real Estate law over the span of my 32-year carreer, Realtors are not licensed to give legal advice.
However, it is my opinion that from what you said, "you SOLD your house". Period. Once the title went into the other party's name, you probably have no further rights to the property. Didn't you get paid your equity at closing? What are you expecting from the property now?
Be sure you talk to an attorey who deals in Real Estate law. I suggest you call Paula Hester at Alamo Title Company in Colleyville. She is Board Certified in Real Estate Law.
Good luck, and please call me before you get engaged in another real estate transaction. That way I'll be able to give you better advice, and we'll make sure you're not getting screwed. This happens to FSBO's all the time, and buyers and sellers alike think they are saving money. Ha!
Best regards,

Rick DeVoss

ULTRA Real Estate Services

817-300-6121

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0 votes
Guy Gimenez, Agent, Austin, TX
Sat Jan 12, 2013
You will need to seek legal counsel since no one here has read your original contract and what contract terms, if any, survived the closing. Take the deed, contract and all closing documents to a seasoned real estate attorney. I would suggest you do this soon since your credit will continue to be at risk and the home could ultimately move to foreclosure phase...at which time the lawsuits are likely to fly.
0 votes
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