Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Thursday, August 10, 2017
Migrant Worker Loses Thousand$ After Buying Home Site On Land Contract; Completes Making All His Periodic Payments Only To Encounter Trouble Getting Deed Put In His Name
In Progreso, Texas, KRGV-TV Channel 5 reports:
A man said the deed to a Rio Grande Valley lot he purchased was never transferred to his name.
Everardo Garcia is blind and an amputee. He worked as a migrant across the U.S. but had to retire due to complications related to diabetes.
Garcia said he’s spent all of the money he had on a plot of land since 2008. It was to build the home he and his wife always wanted.
“I would give him payments. Every time I came from up north, I would hand him my income tax, too,” he said. “The way I would get the money, I would give it to the man. We don't know how to read. It wasn’t until my daughter said, ‘No, my dad gives this man too much money.’"
Property attorney Armando Puente told CHANNEL 5 NEWS that’s due to the type of contract he signed. He said it’s known as a contract for deed.
“It binds the buyer and the seller, on the certain properties, and sets out all the terms usually on a single or two pages. But basically it says, ‘When you finish paying me, I will give you a deed. At your expense, of course,’” Puente said.
Puente explained these types of contract, written for a term of more than six months, is illegal. He said page 22 of the Texas Property Code 2016 Edition states the style of contract was banned in 1995.
“At that point, there is nothing there to show that you had an interest in it, other than the piece of paper that you have in your hand,” he said. “Fraud can happen so easily, it’s frightening.”
The attorney explained people who find themselves entangled in this style of contact may sue if they never receive their deed. He admitted it can be an uphill battle due to the lack of paperwork.
Garcia said he wants to sue the person who sold the property. He said the only problem is he can’t afford an attorney.
Puente said if you plan on purchasing a property be sure to sign a deed of trust contract. He said the deed will be transferred into your name during the life of your contract.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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