Property Fraudulently Sold to Me.

[Jared Forman]

I live in Phila PA and last month I purchased a property for $60,000 using hard money from a wholesaler. At the closing table the wholesaler brought someone who he claimed was the seller. She provided her id and signed the documents claiming she was who she said she was. I paid nearly $1,000 in for the following title insurance endorsements  

100, 300, 900, 1015

We started removing content from the property the next day, so we could proceed with demolition. After lunch I came back to a dozen cops, 2 guys who claimed to own the property, and 3 scared contractors. Immediately I interjected and found out the property was sold to me fraudulently. 

We filed a claim through the title insurance, but they are saying I purchased the property and the actual owner needs to sue me to get the property back. This seems very bazaar to me and does not sound or feel right, my lender agrees with me on this. 

Now the title company is advising my lender to foreclose on the property. 

Can you one provide any form of advice???

[Fred Engh]

You should seriously consider doing a full write up for us to learn from.

How did you learn about the property?

Who contacted you?

What were the terms of the deal?

What transpired?

Did you have any red flags?

How was the title company defrauded? What mistakes did they make? 

Do you have a takeaway from this? It sounds like you're receiving your money back, but it's still unfortunate you wasted your time on this. 

Did the title company pay the fraudulent seller? Did they actually incur a lost?