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 11 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.

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