Revoking a Sale Based on Fraud By the Buyer
My question involves real estate located in the State of: Texas
Four weeks ago, my friend was facing foreclosure on her homestead for back taxes.(long story there--lost her ag exemption and county didn't tell her for 3 years) In desperation, she tried to get a hard money loan using a 50 acre piece of land she owned outright as collateral. Her plan was to pay off the back taxes with the hard money loan, and then sell the 50 acres and pay off the hard money loan within 6-9 months.
Turns out Texas doesn't allow hard money loans on certain properties (I don't quite understand the details here), but she found someone who told her (3 days before the auction) that he would purchase the 50 acres for $32,000--the amount she owed, and give her an option to re-purchase it within the next year. Well, he did purchase it for $32K plus closing costs, but did not give her the option but instead a lease contract (she's paying him $53/day for 6 months--on bare land) and after much run-around and cow poo, he finally told her that he plans to sell the land as soon as possible and she'll "never see that property again". By the way, those 50 acres are worth $250K just for the dirt, and with all water and mineral rights, she can get at least $275K - $300K. This is based on local land prices near Rockdale.
So, basically, this private money lender (who is also a real estate agent and broker) stole her land for about 1/10 its value. My friend is in her 50's and completely broken--this land was her retirement nest egg.
I told the story pretty succinctly, but obviously, she's been a nervous wreck and the whole thing happened faster than she could process it. His switch of an option contract for a lease contract was done so quickly and smoothly that she didn't catch on until she went to go list the land with a RE broker.
Can anything be done to recover her loss without tying the RE up in court for years? I should add that she is pretty completely broke.
Thanks for any and all help!
Re: Revoking a Sale Based on Fraud By the Buyer
Your friend needs to take all of the documentation at issue to a real estate lawyer to have her situation reviewed.
She can see if she qualifies for legal aid.