subject to, foreclosure, deed not recorded, problems

[Mike Landry]

I have been talking to a person that is being foreclosed on.  She is seeking legal guidance but I wanted to get some opinions here as far as what her options are.  Here is the situation.  She sold her house in spring, TX back in 2008 to a "realestate company" that wrapped her note and told her the new owner would refinance it in 3 years.  Title was transfered to the new owner and recorded with the county.  A couple years later they sold it to someone else and only wrote out a deed on paper, not recorded with the county.  Of course when they bought it they didin't pay the loan because the sellers said there wasn't a loan and they owned the house free and clear. 

This was years ago and her original loan that was sold subject to has been trying to foreclose for years. But the current owner gets it stopped in court some how then a few months later the loan gets sold to another bank and she has to explain the whole situation again and start over.

She just wants to not have a foreclosure on her record.  The tite company that transacted the subject to is not talking to her or helping her at all.  She has most of her paperwork and is questioning if she was scammed and a victim of fraud.  

How does she get out of this.  If she could get the house back, she would sell it to me for a great deal.  But it might not be worth it if she has to pay thousands in attorney fees.  Thoughts?

[Wayne Brooks]

If it was a straight sub2, she is totally SOL with no recourse, no way to regain title. If she truly did a "wrap", which means she holds a mtg to buyer (which I doubt), she could foreclose, but there is likely no benefit to that and no equity to play with. Likely a colossal waste of time if you are looking to buy this property.