Posted by NC Homebuyer on August 20, 2003 at 18:20:42:
It’s possible they’re looking for form authors.
I’d like to ‘NOT’ give them any forms or the list of my properties. No to the list of properties, I’m thinking of limiting the forms to just those used in the deal that started all this.
Thanks for the input…
Attorney General Visit Requested - Posted by NC Homebuyer
Posted by NC Homebuyer on August 20, 2003 at 14:07:06:
I posted this in the legal section but thought others may want to see this.
Situation:
I bought a house sub2. I used a contract similar to the France’s, I used an addendum with due on sale disclosure, I also used LeGrand’s due on sale letter, all signed. I verbally explained to the sellers how it worked. They thought about the deal for two to three weeks. I bought the house.
They were two months behind. They moved out at the end of March, I took possession and moved people in on April 1. I sent a check for three months, (2 back + current) to the lender. I also sent POA with a change of address request.
I talked to the lender after they received the POA and found that an additional $880 was required for back late fees. They held check #1 until check #2 arrived, about April 22. Then all is well, no late payments.
Sellers tried to obtain a loan for a new home. Due to many late payments and a 60, 90 day late they were unable to do so. They called the lender several times (possibly telling them they sold the house.) They called me and asked why I was so late in paying the loan. I wasn’t. As I said, the lender didn’t cash the initial payment until the additional $880 arrived.
I just called the lender and according to customer service, no problems with the loan.
Sellers talked to an attorney who sent a letter requesting I give the house back due to my negating our agreement by paying late. (I didn’t pay late and on-time payments are not stated in the agreement). My attorney said ‘no problem, give him a call’. I called and left message. The next day, the NC Attorney Generals office calls stating “questionable business practices” and want’s me to drive to Raleigh for a meeting.
I am not sure what to expect. I have disclosed the due on sale clause to the point of scaring sellers.
I am setting an appointment with my attorney ASAP and will follow up with more details as I get them.
I know the sellers are PO’d because they’re credit is messed up. I did not do the messing. Any ideas what’s going on? I am nervous, thus this post and request for comments.
Lawyer and AG are likely buddies - Posted by John Behle
Posted by John Behle on August 21, 2003 at 19:10:23:
By all means DO NOT meet with the AG without an attorney and only meet with him if your attorney agrees. The seller’s lawyer and the attorney general sound like they are buddies for him to jump in so quickly as he has. It is INTIMIDATION and probably means little, but your attorney needs to take a similar stance.
You would think that an attorney general or someone on their staff would be of the highest ethics and beyond reproach - NOT necessarily so. They are attorneys infected with the political disease. Their job should be protecting the public, but more often than not, they like to score points, get publicity, make examples of people, etc. Be very careful. If it is more than intimidation, then the AG might have an agenda. Even when the AG is a decent person, many times the staff are Gestapo wannabes that could see crushing you as their next cause and way to score points. It might be there have been real estate scams around and they want to start cracking down. Guilt, intent or even the level of the perceived “crime” may make no difference.
Re: Attorney General Visit Requested - Posted by Joe Kaiser
Posted by Joe Kaiser on August 21, 2003 at 01:17:34:
The mistake rookies make is they think if they just explain the
situation, they’ll be able to show that they’re sincere and honest
and the problem will be resolved.
It won’t. This has nothing to do with what you think it does. The
normal rules don’t apply.
Tell the AG you have no intention of participating in any sort of
meeting and if they have any questions, they should contact your
attorney.
Don’t give them anything, and make sure your attorney
understands the “no problem” mentality isn’t helpful here. This is,
in fact, a problem.
Don’t post details here until the matter is resolved completely.
I hope you got them signed off on my seller disclosure form.
Good luck.
Joe
Re: Attorney General Visit Requested - Posted by B.L.Renfrow
Posted by B.L.Renfrow on August 21, 2003 at 01:06:41:
I would NOT, under any circumstances unless you are under subpoena, meet with the attorney general’s staff. They are looking to hang you. Why give them the rope and step onto the scaffold? If you don’t have your attorney involved, now is the time to get him or her involved. Let the attorney negotiate for you. Do not take calls from the AG’s office, do not accept letters from them. Let your attorney handle it from here on.
Brian (NY)
well i am sure that… - Posted by Brian Powers(MI)
Posted by Brian Powers(MI) on August 20, 2003 at 14:17:39:
…one of the 47 courses on buying homes subject-to covers a situation like this and offers advice.
i mean, its not like they would charge $300-$600 and give you all the pie-in-the-sky fluff would they?
BP
Re: Attorney General Visit Requested - Posted by NC Homebuyer
Posted by NC Homebuyer on August 20, 2003 at 14:10:39:
New developments:
Visit is scheduled for Friday, they want copies of all forms and a list of all properties I’m working with.
According to them, buying subject to is not buying.
I’ll keep you updated…
Re: Attorney General Visit Requested - Posted by NC Homebuyer
Posted by NC Homebuyer on August 21, 2003 at 12:26:30:
Joe,
Thanks for the input…
Yes, I did get your form signed.
Re: Attorney General Visit Requested - Posted by NC Homebuyer
Posted by NC Homebuyer on August 21, 2003 at 12:28:21:
Brian,
Thanks, I’m setting an appointment with my attorny and checking to see if he’s comfortable or can get comfortable enough with what we do to give strong support. If not, I’m hoping he can help me find someone els.e
Nah… - Posted by Curt Dalton
Posted by Curt Dalton on August 20, 2003 at 14:33:48:
I think there’s even a section in some of the courses that list references for bail bondsmen by individual state just in case you might need them.
I know you mentioned this already - Posted by Houserookie
Posted by Houserookie on August 21, 2003 at 08:31:46:
but bring a copy of HUD-1 to the AG office.
Circle lines 203 and 503. Explain to the AG staff that buying homes as specified on lines 203 and 503 can take several forms including
contract for deed
title holding trust
wrap around mortgage,etc.
Everybody’s out to make a name for themselves these days. So give them reasons why they shouldn’t be wasting their time with you.
When dealing with private citizesn a defendent can counter sue for legal costs. The AG office is a different beast altogether. You can win and still go bankrupt with outrageous expenses.
Let’s hope everything works out for you. Good luck,
Re: Attorney General Visit Requested - Posted by rm
Posted by rm on August 20, 2003 at 17:04:56:
Did your attorney review the paperwork on this deal at any time prior to now?
Perhaps you can have him attend this meeting in your place.
It’s water under the bridge now, but did you get written documentation of the arrearage from the lender prior to sending in your original check?
Also, please tell me that you didn’t tell them that they could qualify for a loan.
It’s extraordinarily difficult to qualify for a mortgage with lates on the last mortgage- particularly when they’ve occurred in the last 12 months.
Re: Attorney General Visit Requested - Posted by Joe
Posted by Joe on August 20, 2003 at 15:26:58:
Unless they have a new meaning of what a deed and contract is I would like to hear about it. NC, keep your cool. Don’t let titles scare you off or make you nervous. Paperwork and Follow up is Key in this situation. Don’t go in there by yourself either.
I would talk to your attorney before you hand over paperwork. Unless they have a subpeona (can’t spell) I would be hesitant. Good Luck.
Re: Attorney General Visit Requested - Posted by keith hutson
Posted by keith hutson on August 22, 2003 at 22:03:03:
Good reason to make sure you have a good real estate attorney on board and have a good relationship with him/her. These problems come out of nowhere when you least expect it.
Keith Hutson
And they say lease/options are dangerous! (nt) - Posted by Doug Pretorius
Posted by Doug Pretorius on August 20, 2003 at 15:03:22:
.
Re: Attorney General Visit Requested - Posted by NC Homebuyer
Posted by NC Homebuyer on August 20, 2003 at 18:17:38:
Attorney did not review deal, I use the same set of documents for all sub2 deals.
I did not get documentation from the lender re the arrearage. I do now have everything paid up. Lender customer service says all is fine. Attorney General says lender is threatening calling the loan due to the original sellers. Lender has all my info: name, address, phone; no calls yet.
I did not tell them they could get a loan. They told me they were going to rent for a while. Turned out to be one month. then they tried to get approved for a loan. I did send them an CFD they requested.
Re: Attorney General Visit Requested - Posted by NC Homebuyer
Posted by NC Homebuyer on August 20, 2003 at 15:35:52:
Thanks,
I’m going to delay the meeting for a week or so. I’ve already decided not to give them my property list.
I’ve also found that Subject to deals are listed on the US Attorney General approved HUD-1 on line 503.
I really appreciate the ‘positive’ suggestions. This business is great. Every business has challenges to overcome. I know I am not illegal. I just don’t want a witch hunt to begin with my business.
Later…
Re: Attorney General Visit Requested - Posted by NCPaul
Posted by NCPaul on August 20, 2003 at 16:27:32:
You are right to try and avoid a witch-hunt because our AG being the political animal he is would surely use this sort of thing to move further up the political ladder. . . I mean to protect the poor downtrodden consumer from themselves! I’m not sure where in NC you are but if you need a local place to make copies/faxes, etc while you are in town my office is in Zebulon and you are more than welcome to use whatever you need.
Good luck
Re: ROFL - NTXT - Posted by Randy
Posted by Randy on August 21, 2003 at 13:31:55:
Ok Brent, I can figure out most of the acronyms used on this site but ROFL?? If you can?t post it here email me please, I?d like to know what it means.