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Ugh. Anyone know where I can find my mom /honest/ legal advice on Real Estate BS?

Discussion in 'BlackHat Lounge' started by sharkpooch, Nov 19, 2011.

  1. sharkpooch

    sharkpooch Newbie

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    *My post kept triggering the automated moderation system, because my account is pretty new. But I don't think I'm breaking any rules, other than maybe colourful language. Thus, I spent an hour revising and editing it chunk by chunk until the system accepted it.*

    If I actually am breaking rules, then I profusely apologize. I kinda need help with this though and I'm not sure where to find it.


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    I've only been on the forum for a week. I've been reading it and studying more or less the whole time. My experience so far is that many of its members are that almost-impossible-to-find combination of genuine and informed... So I thought I'd try my chances asking something pretty OT, because I seriously have no idea what else to do:

    Today, I arrived "home" to a cacophony of BS that for now takes precedence over turning a profit online. Everything about this situation is fishy. It reeks of vulturism. And oh yeah, I live in Canada.


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    Essentially, my mom is in pretty bad health. It's been declining for years. Months back, her commonlaw skyped to his "psychic" sister in russia who can "talk to angels", and these "angels" said that my mother's condition is due to "bad energy" from her house.

    • -->I'm pretty logical by nature. That's a massive facepalm to swallow.
    • -->Now, one of the few people whose intentions I more or less trust are the commonlaw's. He's just kind of... your average gullible theist coming from a second/third world background.

    So they decide they're moving. Keep in mind that the current house is owned by my mom, the mortgage is in her name, etc. They come up with an agenda to reno like, the entire house, sell it, and downgrade. The downgrade is so my mom can take time off of work and have money to pay for medical treatments. So for some reason, the first thing in this agenda includes the commonlaw fishing out a sketchy russian realtor, who insta-starts finding them a bunch of houses to see.

    They bought the first one they bid on, at well over asking, WITH NO CONDITIONS . They (she?) put a 10 grand deposit on this place. I brought up how obviously terrible a decision this was to my mom. She told me it was a combination of
    1. urging by her commonlaw to bid aggressively on the house
    2. urging by the realtor, who the commonlaw found by social networking or something, to place NO CONDITIONS on the offer.

    At this point, she's been steered into buying a house. The transaction date is in two months. Somehow they think they can renovate the entire house, get it on the market, and sell it in those two months.

    Fast forward to today. Needless to say, the renovations took a month and a half. The house has only been on the market for a week. Transaction date for the house she bought is in 5 days. The house is unlikely to sell before they have to take possession of the new house. So she's going to wind up selling the house for less than its probable "market value". More or less, once the people involved in making these sales get their cut, she's going to be left with a property that's worth less than the last one, and no money left over for treatments or crucial time off .


    THE MORTGAGE SPECIALIST

    From what I gather, her commonlaw found some random russian mortgage specialist, once again, through social networking or something. This guy seems sketchy (tho I don't trust anyone who works for a bank).

    The "mortgage specialist" draws up two mortgage offers, both of which are more expensive than and thus crappier than the monthly payments my mom's making on this place. Oh, and both would be in solely my mom's name (as opposed to the commonlaw's too), since she has better credit or something.

    /THE MORTGAGE SPECIALIST


    So now she's looking at HIGHER MONTHLY FEES, a LESS VALUABLE PROPERTY and NO GAIN on the sale.

    Her, the commonlaw and myself talk it over last night. I was pretty annoyed, and I think I managed to convince the commonlaw (using the american real-estate crash as an example) that in this market, it makes way more sense to rent instead of buy. So we draw up a consensus that, although we feel bad for the 85 year old couple we may be shafting by doing this, the sanest course of action is to walk away from the purchased property and leave the 10 grand on the table.

    So my mom calls the mortgage specialist today and tells him that both of his propositions make no sense, so we're probably just going to walk away from the deal and be down the 10K (ouch, seriously...). This banker snake fires back that if they do that, there will be "legal ramifications". So they set up some appointment tomorrow to "talk it over".

    So I overhear this. At this point, I'm starting to kettle. The mortgage specialist may or may not be right about "legal ramifications". I wouldn't know, I usually consider legal obscurium a waste of time. But I think I have to know now. It seems like this snake is trying to scare her into losing a lot more money than she already has.

    See, as I see it:


    The Victims:
    - My mom
    - the 85 year old couple trying to move into a condo and selling her their house

    The Jerkbags:
    - the realtor
    - the mortgage specialist / bank

    WTH?:
    - the commonlaw
    - his --crazy-- "psychic" sister


    Sorry. I know there's a good chance my thoughts are scattered and I've left out a lot of details. I'm pretty annoyed: I'm just a young guy watching my sick mother being taken advantage of by a network of sketchy immigrants, right before my eyes. I kind of need to figure out what to do in this situation. If I do nothing, she will pushover and be railroaded out of the things she needs to have a chance to recover her health.

    Is there anyone with experience with this, knows someone I can talk to, or can help me figure out what can possibly be done to head this situation off at the pass?

    Thank you *so much* for your time.
     
    Last edited: Nov 19, 2011
  2. sharkpooch

    sharkpooch Newbie

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    rofl. Life, eh? I am talking to myself on a public forum about my parent's financial turmoil. -.- Sorry about that.

    At least writing this out helped to organize the whole situation. Reading it over, it's soooo ridiculous...

    For the record:

    After some mild digging, cooling off and a bit more discussion, it looks like the mortgage specialist is right: Backing out of a deal such as the one my mom's been pressured into would have her covering a lot of other people's costs too. The time to talk her out of this craziness was a month and a half ago. Now the law is on the 'shady' side.

    Apparently, you can "buy out" of mortgages by paying 3 months worth of costs, or something. This, if true, is less than the 10K deposit, and comes with no "legal ramifications".

    Mortgages: It strikes me as ridiculous that the difference between getting a decent rate and 5-years of a steep rate is a couple-of-weeks window in which the prior house hasn't sold. Debt sucks, hey who'd have thought?

    Hmm. Remind me never to get a mortgage. But as far as this situation goes, the current strategy is to occasionally remind them that getting stuck with a fresh mortgage in a real-estate bubble will more or less mean they can never move, once the bubble bursts and the house is worth less than the mortgage.

    That, and namedropping Chile as this neat place with lots of copper that doesn't seem totally controlled by banks...

    :3
     
  3. MasterGodfather

    MasterGodfather Newbie

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    Your rights have a lot to do with where you live. In the US it even varies state-to-state. I have some exp in some real estate matters/law in a particular US state, and, although you didn't specify your location, based off your terminology I would wager you are not in it...
     
  4. sharkpooch

    sharkpooch Newbie

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    Hey! Thanks for responding.

    I'm up in Ontario.