Real Estate/Mortgage Fraud Victim

UPDATED: Jul 6, 2009

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Real Estate/Mortgage Fraud Victim

I’m a victim of fraud on a huge scale. I was roped into a scam by a former friend to purchase 2 homes for investment purposes. Long story short, the value of the homes were inflated and everyone involved including the loan officer, & lawyers, etc.. ran away over $400,000 Two years later, I’m still stuck with the bill totaling over $1million. I’ve been trying to sell as short sales, but the bank has sold 2 of the 4 loans to collection agencies. These agencies are after almost $200,000, while one home has already foreclosed. My credit is ruined. Should I just file bankruptcy at this point?

Asked on July 6, 2009 under Real Estate Law, New York


J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

I am a lawyer in CT.  If you cannot pay the amount due and your credit is already shot, I suggest filing BK.  More importantly however, I would look into filing a lawsuit against the lawyer and all those involved.  It sounds like this was a foul scheme that left you with nothing.  This is not right.  Fraud in most states carries a 3 year statute of limitations.  I am not a NY lawyer so I dont know what NY law is, however, it is worth looking into.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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