Friday, March 16, 2012

Buyers Allege Sellers In Possible Contract For Deed Scam Pocketed Monthly Payments Intended To Satisfy Existing Mortgage, Leading To F'closure Threat

In Jefferson County, Texas, The Southeast Texas Record reports:

  • Two Jefferson County men have filed suit against the people who sold them their property for defaulting on the lien.

  • Mario Espinola and Tomas Espinola claim they purchased property [...] in Port Arthur from the defendants for $125,000 on April 1, 2011. They say they put down $62,500 at the time of the purchase and have been making monthly payments of $5,494.74.

  • Despite the Espinolas' payments, defendants Lloyd P. Broussard and Envirotech Services defaulted on the lien on the property, according to the complaint filed Feb. 21 in Jefferson County District Court. In turn, the lien holder, Great Central Mortgage Acceptance Mortgage Co., threatened to sell the property, the suit states."Plaintiffs had to pay four months of note payments, as well as attorneys' fees and late fees, to cure the default and prevent the property from being sold," the complaint says.

  • "Additionally, Plaintiffs have continued to pay the monthly note owed to Great Central Mortgage Acceptance Company by defendants so they will not lose the property in which they have invested a large sum of money."

  • In their complaint, the Espinolas allege breach of contract and fraud against the defendants.

Source: Homebuyers forced to make additional payments, suit claims.

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