Owner was scammed

[Shanequa J.]

I'm buying a house from an out if state seller. We talk often and have a good relationship. She calls me to tell me about how her sister got scammed.

Long story short, she thought she was selling her house and getting the loan out of her name. The investor kept the loan in her name and missed 2 months if payments. On the CAR contract, he checked other and wrote "buyer will buy house subject to seller's mortgage and pay off loan balance." Instead of checking the assumption box and giving her the required addendum, he took the sleazy way. The title company is nervous because they didn't ask for the addendum either.

Can she resell the house with his name on the title since he scammed her and didn't pay the mortgage each month? I don't know anything about Fresno, but I was thinking about wholesaling the house.