“Dear Steve,
Purchased a lot in Waverly Georgia called Bridge Pointe at Jekyll Island on 12/2007 from Land Resources for $509,000. Loan for $446,000. Interest only payment $2,600 mth. Current property value less than 40,000.
Property never appraised at $509,000 but Bank of America wrote a justification for loan based on future amenities and infrastructure promised by Land Resources. I made multiple requests for copy of appraisal and never received it. B of A had fudiciary responsibility to check out bonding for infrastructure. Land Resources filed bankruptcy.
Owner shot wife in head and currently in jail. Bonding was fraudulent and owners currently in jail. I paid $3,600 a month for 2 years ($1k mth over interest only payment) trying to pay off loan. I lost job and am now employed at 1/3rd less than previously making. I stopped making payments 4 months ago.
Bank turned loan processing over to GreenTree and no one is calling me. I think they are going to try to quietly foreclose because I believe I probably have legal recourse but attorneys want money and I don’t have any.
Should I get a forensic audit? An Attorney? Just foreclose? Please help soon as I am VERY suspicious that no-one is contacting me for being 4 months late, and fear that getting out of this will be a questionably legal as getting into it was.
Brenda”
Dear Brenda,
Wow, what a mess.
Okay, let me preface my opinion with the fact there is never a harm in meeting with an attorney licensed in your state for a legal opinion. That’s something I can’t give you.
But from a life experience and reality point of view you’d probably need cash to pay for the lawyer. It is probably unlikely you’d recover your losses from the developer or owner given that his financial status is probably a worse disaster.
If you got an attorney to roll back the transaction that doesn’t address the problem with Bank of America. You’d have to go after Bank of America separately and that could get expensive.
I would suggest that you meet with a licensed real estate attorney in your state and discuss the matter. See what terms they may be willing to undertake pursuing this case. They might feel they could get attorney fees from Bank of America and then might take it on a contingency.
If that doesn’t pan out then you might want to hand it back to the bank, let them foreclose and follow that up with a bankruptcy to terminate your resulting liability.
Please update me on your progress by
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