NH Pair Accuse Local Real Estate Agent Of Pocketing Upfront Cash In Owner-Finance, Lease-Option Deals, Then Failing to Pay Now-Foreclosed Mortgages

In Hudson, New Hampshire, The Telegraph reports:

• [Sheila K.] Jones, who is currently going by the name Sheila Mitchell, called The Telegraph last week to complain about the Hudson real estate agent who provided owner financing for her unit in a duplex. Her husband, Garlan Troy Mitchell, has since filed a lawsuit in Nashua District Court against the agent, Matthew Trudel, for $14,000 in real estate earnest money.

• Garlan Troy Mitchell signed a purchase and sales agreement with Trudel in May to buy the newly-constructed three bedroom unit. Trudel, who owned the property, agreed to carry the mortgage for one year while Mitchell made payments. The deal called for Mitchell to secure his own financing by July 30, 2010, and transfer the deed. In an interview with The Telegraph in her home last week, Jones claimed she and Mitchell lost their $4,800 deposit when the property was sold at a foreclosure auction in October.

• Debra Garman, 41, a teacher who lives with her family in [the same complex], claims Trudel owes her $3,900 for the security deposit and first month’s rent. She also said he hasn’t finished all of the construction on the property as promised. The unit was new last spring when Garman moved in, signing a lease agreement with an option to buy.

For the story, see Police say Hudson woman stole $550k. rent to own lease purchase option scams yellowstone