Posted by William Bronchick on March 17, 2006 at 12:47:58:
They may actually have a case. I presume you got the deed from the owner under the premise of the short sale going through. Since it did not go through, you would have to give back the deed, so in theory, it’s theft.
That’s theory, at least. You might have had a civil claim against the seller, which was settled for $5k, but you essentially blackmailed her by refusing to give back the deed, which you were legally obligated to do.
I don’t know the all the facts here, but I do know one thing - hire a good lawyer, and in the future, make sure you seek counsel on these deals when they blow up.