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  • Trustee ethics

    I am hoping to gain some insight from this group since I have hit a brick wall elsewhere......

    I had a legal contract to purchase the house I am living in from the owners which was signed about
    2-2003. The mortgage broker I was working with sent escrow instructions to the sellers that
    differed from the agreed upon terms.. They decided I was trying to take advantage of them and
    refused to sign the final papers within a week of funding.

    I went around with these people, trying to get them to understand I had fired that agent and hired a
    new broker. The new broker even called the owners and faxed them the copy of escrow showing
    that the terms were as agreed. Finally, I hired an attorney. The day I hired him, I got home to
    find the BK papers in the mail. Needless to say, that stopped all legal action. This was in May
    2003.

    In September, the trustee listed the property with a real estate agent at 50% more than the agreed
    upon price. Since I am disabled, moving was scary!!! So, I submitted a bit at the higher asking
    price. Now, 9 months later, the trustee is setting terms that are crazy. He has finally "agreed"
    to the sale only if I will now pay the back rent which he never asked for until now. He also
    demands I put an extra $5000 in escrow, and refuses to sign any contract that pays my real estate
    agent.

    I have been working on this deal for almost 2 years, the first approval for the mortgage was July
    2002. I really want this done!!! Each time my agents hear from the trustee, a new term is added,
    and the money amount continues to grow.

    My question is "What are the rules for the trustee? What happens to the money left over from the
    sale of the house? Are trustee usually this vendictive? What recourse do I have?"

    My attorney said that at the hearing, both the judge and the attorney for the owners agreed to sell
    the house for the contract price. The house has increased by 30%, per appraisals, but the trustee
    increased the price by 50%.

    Once the house is in my name, and all the papers signed, I want to file charges against the trustee,
    do I have a case? If so, where do I start? I had planned to start with the legal assosciations in
    all counties involved, the state and federal legal boards, and maybe the local TV stations. Any
    others?

    Sorry this is so long, and thanks for all help.

    Thank you,
    Bonnie

  • #2
    Trustee ethics

    "Bonnie" <[email protected]> wrote in message
    news:[email protected]
    I am hoping to gain some insight from this group since I have hit a brick
    wall elsewhere......
    <snip>
    My question is "What are the rules for the trustee? What happens to the
    money left over from the
    sale of the house? Are trustee usually this vendictive? What recourse do
    I have?"

    These links may be helpful:

    http://www.usdoj.gov/ust/ustp_manual/manual.htm#vol2
    http://www.usdoj.gov/ust/


    Comment


    • #3
      Trustee ethics

      At some point you just have to walk away. This sounds like one of them.
      You've been screwed around with a lot longer than most people would have
      patience for. I'd back off and see what the trustee does when s/he no
      longer thinks that you are on the hook. Chances are the price may go down,
      and terms may become reasonable again.

      In any event, it sounds like you're dealing with a sleazebag for a trustee,
      had a broker who was an idiot (check with your state's licensing board, you
      may find a realtor's fund that you can go after to pay the differences based
      on your realtor's errors and the delays they caused). The BK papers don't
      stop you from pursuing a bad realtor, nor do they stop your attorney from
      kicking up a helluva fuss in the bankruptcy proceedings. Although many of
      them think they are - trustees are not gods!

      I'd still walk away from the house deal, but I'd go after damages where the
      realtor/broker and the real estate firm are concerned.


      "Bonnie" <[email protected]> wrote in message
      news:[email protected]
      I am hoping to gain some insight from this group since I have hit a brick
      wall elsewhere......
      I had a legal contract to purchase the house I am living in from the
      owners which was signed about
      2-2003. The mortgage broker I was working with sent escrow instructions
      to the sellers that
      differed from the agreed upon terms.. They decided I was trying to take
      advantage of them and
      refused to sign the final papers within a week of funding. I went around with these people, trying to get them to understand I had
      fired that agent and hired a
      new broker. The new broker even called the owners and faxed them the copy
      of escrow showing
      that the terms were as agreed. Finally, I hired an attorney. The day I
      hired him, I got home to
      find the BK papers in the mail. Needless to say, that stopped all legal
      action. This was in May
      2003. In September, the trustee listed the property with a real estate agent at
      50% more than the agreed
      upon price. Since I am disabled, moving was scary!!! So, I submitted a
      bit at the higher asking
      price. Now, 9 months later, the trustee is setting terms that are crazy.
      He has finally "agreed"
      to the sale only if I will now pay the back rent which he never asked for
      until now. He also
      demands I put an extra $5000 in escrow, and refuses to sign any contract
      that pays my real estate
      agent. I have been working on this deal for almost 2 years, the first approval
      for the mortgage was July
      2002. I really want this done!!! Each time my agents hear from the
      trustee, a new term is added,
      and the money amount continues to grow. My question is "What are the rules for the trustee? What happens to the
      money left over from the
      sale of the house? Are trustee usually this vendictive? What recourse do
      I have?"
      My attorney said that at the hearing, both the judge and the attorney for
      the owners agreed to sell
      the house for the contract price. The house has increased by 30%, per
      appraisals, but the trustee
      increased the price by 50%. Once the house is in my name, and all the papers signed, I want to file
      charges against the trustee,
      do I have a case? If so, where do I start? I had planned to start with
      the legal assosciations in
      all counties involved, the state and federal legal boards, and maybe the
      local TV stations. Any
      others? Sorry this is so long, and thanks for all help. Thank you, Bonnie

      Comment


      • #4
        Trustee ethics

        On Tue, 11 May 2004 07:00:29 GMT, Bonnie <[email protected]> wrote:
        I am hoping to gain some insight from this group since I have hit a brick wall elsewhere......My question is "What are the rules for the trustee? What happens to the money left over from thesale of the house? Are trustee usually this vendictive? What recourse do I have?"My attorney said that at the hearing, both the judge and the attorney for the owners agreed to sellthe house for the contract price. The house has increased by 30%, per appraisals, but the trusteeincreased the price by 50%.Once the house is in my name, and all the papers signed, I want to file charges against the trustee,do I have a case? If so, where do I start? I had planned to start with the legal assosciations inall counties involved, the state and federal legal boards, and maybe the local TV stations. Anyothers?
        ---- clippped-----

        Thanks for all replies, it has given me a starting point!!!! I saw my attorney on Tuesday, and he
        said we could not file against the previous broker since this would be tied to the BK of the owner.
        I am not happy with my attorney, or his firm. I don't think he was aggressive enough, but has
        finally convinced the trustee to complete the sale. He had to threaten to sue the trustee to spur
        this action.

        As far as moving, I have already invested so much time and money, that I don't want to have to start
        over. Since I could not move or even pack the items in the house, it would cost me a fortune, and
        even with the increased price, the house is still cheaper than anything thing in the area.

        Once again, thanks!!! You may hear from me again when I finally sign the escrow papers. Then the
        fun will begin ; )


        Bonnie

        Comment

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