Posted by River City on January 20, 2006 at 12:26:31:
I certainly would not quit claim the property back to the seller until I had my $20K in hand. Otherwise you might be screwed. Good luck.
HOEPA - Posted by billy
Posted by billy on January 19, 2006 at 19:03:53:
I’m in a bit of a mess. Put a home under contract during the week between Christmas and New Year’s. Had an arrange ment to option the property back to seller. Had to deliver 20K to Foreclosure attny. to stop impending sale on the steps. Closing was set for 1st week of new year. I have her sign a quit claim deed. On the 28th i receive a fax from seller saying she wants out of contract. I say fine-give me back the 20K. She contacts an attny that says I am a predatory lender and that I have violated HOEPA and TILA laws. From my research i have uncovered that a judge “could” deem this a loan. Has anyone had to battle this situation and to what outcome.
Re: HOEPA - Posted by Natalie-VA
Posted by Natalie-VA on January 23, 2006 at 17:54:38:
Billy,
I’m curious to know if you will continue to give sellers the option to buy the property back, or if you will change something in your process to try and prevent this?
I think I lose deals by not giving sellers the option, but I probably save myself some headaches too.
–Natalie
Re: HOEPA - Posted by River City
Posted by River City on January 20, 2006 at 06:57:14:
Federal HOEPA (Home Owner Equity Protection Act) does not apply to purchase transactions. It applies to refinance transactions. Some states are passing their own predatory lending laws that may or may not affect purchase transactions.
And, what is it in TILA (Truth in Lending Act) that they say you are violating? You need to get the specifics on this, as TILA is a disclosure law.
Have you received anything from the attorney or is she just saying these things?
Re: HOEPA - Posted by billy
Posted by billy on January 20, 2006 at 07:17:01:
My attny. has spoken to their attny who seems to be just “brandishing sabers”. They have not cited any specific TILA violations. We have offered to walk away from the deal and just put the seller on a payment plan to get us back the 20K.