We Were Sold A Home Illegally

Summary

Summary of "We Were Sold A Home Illegally" Episode of The Ramsey Show Highlights

Release Date: March 14, 2025
Host: Ramsey Network
Episode Title: We Were Sold A Home Illegally

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Introduction

In this gripping episode of The Ramsey Show Highlights, Mary, a first-time homebuyer, reaches out to discuss a distressing situation where she and her family were sold a home under fraudulent circumstances. Hosted by Dave Ramsey and featuring expert insights from attorney George Kamel, the episode delves deep into the complexities of real estate fraud, legal recourse, and financial implications for unsuspecting buyers.

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Mary's Predicament: An Illegal Home Purchase (00:06 - 03:12)

Mary begins by outlining her ordeal:

Mary (00:06): "We actually were sold a home illegally, and we are wondering if we should claim bankruptcy."

She explains that after purchasing the home in April 2023, they discovered significant issues during routine property upgrades. When attempting to fence their property and encapsulate the crawl space, they learned that:

• No Legal Existence of Property: The county confirmed that the property they purchased didn't officially exist, as if the house was never built.

  Mary (00:58): "They told us the property didn't exist in the county. There was no house that was on that property."

• Lack of Permits and Certificates: There were no permits or Certificates of Occupancy (CO) associated with the house.

Mary (01:13): "They were supposed to get the CO and obtain it five days after closing, and they never did."

Despite following standard procedures involving inspectors, real estate agents, and lenders, the fraudulent sale went unnoticed until Mary and her family began making modifications to their new home.

• Financial Details:
  • Purchase Price: $259,000
  • Down Payment: $12,000
  • Loan Type: USDA loan

Mary (02:15): "No, we did put down 12,000."

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Unveiling the Fraud and Initial Responses (03:06 - 04:53)

As the situation worsens, Mary reveals the structural issues plaguing their home:

• Mold Development
• Sinking Floors
• Leaning Walls

These discoveries led Mary to seek legal assistance after attempts to negotiate with the builder failed. The responses from various parties involved include:

• Builder's Defiance: The seller, often the builder, refused to buy back the home.

• Inspector's Oversight: The inspector failed to identify any issues during the initial inspection.

Mary (03:11): "They caught none of it."

Dave Ramsey probes further into the legitimacy of the inspection and the closing process:

Dave Ramsey (03:14): "This is a scam?"

Mary (03:15): "Yeah."

George Kamel, Esq., jumps in to offer his perspective, highlighting the likely collusion between the builder and the inspector, which allowed the fraudulent sale to go through undetected.

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Advice and Action Plan: Navigating Legal Waters (04:53 - 06:52)

Dave Ramsey and George Kamel provide Mary with actionable advice on how to handle the dire situation:

1. Legal Action Against the Builder:

   • Sue the Builder: Mary is encouraged to take the builder to court to seek restitution for the fraudulent sale.

   George Kamel (05:46): "Your attorney is a scumbag. [...] Get an attorney."

2. Challenging the Inspector:

   • Involve the Inspector: Since the inspection failed to detect the issues, Mary should consider holding the inspector accountable.

3. Avoid Bankruptcy:

   • Do Not File for Bankruptcy: George strongly advises against bankruptcy, emphasizing that it won't solve the underlying problem.

   George Kamel (05:58): "Do not file bankruptcy. That's not the solution here."

4. Engage a Competent Attorney:

   • Find a New Lawyer: Mary is advised to seek a new attorney with integrity and the resolve to fight aggressively on her behalf.

   Dave Ramsey (06:25): "Get a lawyer who had a brain and who wasn't going to take advantage of you guys."

5. Persist Despite Challenges:

   • Stay Firm: Mary is urged to remain steadfast and not allow others to undermine her pursuit of justice.

   Dave Ramsey (03:47): "It's time for you to get real seriously mad and get going with it."

6. Media Involvement:

   • Local News: Although Mary mentioned that the local news deemed it a legal issue, Dave suggests attempting to garner media attention to apply public pressure.

   Dave Ramsey (05:05): "I'd go to the local news. They love this crap."

7. Financial Management:

   • Continue Payments: Until the legal issues are resolved, Mary is advised to maintain her monthly payments to the lender, as they view the property as valid collateral.

   George Kamel (05:40): "You still owe us the payment every single month."

George Kamel (06:40): "I think find a new attorney with a backbone. Somebody who wants to destroy somebody. This is wrong."

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Conclusion: A Frustrating Road Ahead (06:52 - 06:52)

The episode concludes with Mary expressing her frustration over the lack of progress and ongoing financial strain. Dave Ramsey and George Kamel reiterate the importance of taking decisive legal action and not resorting to bankruptcy, encouraging Mary to remain resilient in her fight against the fraudulent builder and negligent inspector.

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Notable Quotes with Attribution and Timestamps

• Mary (00:06): "We actually were sold a home illegally, and we are wondering if we should claim bankruptcy."

• Mary (00:58): "They told us the property didn't exist in the county. There was no house that was on that property."

• Mary (02:15): "No, we did put down 12,000."

• Mary (03:15): "Yeah."

• Dave Ramsey (03:14): "This is a scam?"

• George Kamel (05:46): "Your attorney is a scumbag. [...] Get an attorney."

• George Kamel (05:58): "Do not file bankruptcy. That's not the solution here."

• George Kamel (06:40): "I think find a new attorney with a backbone. Somebody who wants to destroy somebody. This is wrong."

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Final Thoughts

This episode sheds light on the potential pitfalls of real estate transactions and the importance of due diligence. Mary’s story serves as a cautionary tale for first-time homebuyers, emphasizing the need for thorough inspections, verification of property records, and the selection of reputable professionals throughout the home-buying process. Dave Ramsey and George Kamel provide invaluable advice, encouraging homeowners to pursue legal avenues vigorously and avoid drastic financial measures like bankruptcy when faced with fraud.

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For more insights and financial advice, visit Ramsey Network and subscribe to The Ramsey Show Highlights.

Transcript

[Dave Ramsey]

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[Mary]

We actually were sold a home illegally, and we are wondering if we should claim bankruptcy.

[Dave Ramsey]

Tell us a little bit more. Someone sold you a house that they were not legally allowed to sell you. What happened?

[Mary]

So we bought the home in April of 2023, and we wanted to get some things done, like fencing and encapsulate the crawl space underneath. And we learned that when we went to go get the property surveyed for the fencing that the property didn't exist. And so there were no permits. There's no CO on the house.

[George Kamel]

What do you mean the property didn't exist?

[Mary]

They told us the property didn't exist in the county. There was no house that was on that property.

[George Kamel]

I'm confused. You bought a house sight unseen?

[Mary]

No, we bought the house. We saw the house. The county had no idea the house was built.

[George Kamel]

Oh, so the house was illegally built on that land in the first place with no permits, and then that person sold it to you. How did you even go through the closing process? Was it just done through the seller?

[Mary]

No, it was done through all of the bells and whistles that you're supposed to do with inspectors and real estate agents and lenders and everything. And they still sold it to us.

[George Kamel]

I mean, aren't there titles to be cleared? I mean, I'm just so confused how nobody caught this.

[Mary]

Yeah, so. So the lenders were in the bylaws of our contract. They were supposed to get the CO and obtain it five days after closing, and they never did. And then we didn't find out about all of that. This is our first home. We were first time home buyers, so we learned a lot in this process.

[George Kamel]

What'd you pay for it?

[Mary]

259.

[George Kamel]

And you got a loan on that?

[Mary]

Yes, it's a USDA loan.

[George Kamel]

Okay, how much was the loan for?

[Mary]

It was for 259.

[George Kamel]

So you put nothing down with the USDA loan?

[Mary]

No, we did put down 12,000.

[Dave Ramsey]

Okay, so why are you having to file bankrupt? I get what we just heard. I'm now understanding that, but feels like a lot of people dropped the ball and it was before you, and so this has got to shake out somehow. So what, what, what have you done so far? What do you know? What do you not know?

[Mary]

So basically we have a lawyer on it now. We tried to get help without a lawyer and tried to talk to the builder and gave him all the documents and tried to actually get him to agree to buy back the house. He obviously did not Agree to that. In the process of all of this, the house is actually. It was creating more mold. The floors are sinking, the walls are leaning. We're starting to see.

[George Kamel]

Did you get an inspection?

[Mary]

We did, yes.

[George Kamel]

And they caught none of this?

[Mary]

They caught none of it.

[Dave Ramsey]

This is a scam?

[Mary]

Yeah.

[George Kamel]

Was the inspector friends with the builder?

[Mary]

We are not sure, but seems like it.

[Dave Ramsey]

So this wasn't a resell, somebody else living in it. This was a builder built this essentially as a spec house on that product.

[Mary]

As a brand new home. He said it was a brand new build and he actually. 1950s foundation.

[Dave Ramsey]

Oh, of course. Do you have a good lawyer?

[Mary]

We're not sure at this point. Nothing has happened and we're.

[Dave Ramsey]

No, no, no.

[Mary]

Hold on.

[Dave Ramsey]

Hold on a second. Okay. He's now your law. Your lawyer's dragging this out.

[Mary]

Well, the lawyer's not dragging it out, but there's not really a lot of motion happening and we're just. We just keep paying him.

[Dave Ramsey]

Hey, Mary, Mary, Mary. It is time for you to get real seriously mad and get going with it. Fire the lawyer. Now. You are getting jerked around like I've never even. I can't remember the last time I heard a story like this. And I feel bad for you, but you are going to have to stand up and fight. So you're. You're. The builder screwed you, the inspector screwed you. Sounds like your lawyer is screwing you over. And you are the common denominator in this. And I hate that this is happening, but I got to tell you, George, if I were in this situation, I promise you, I'd have the builder begging for mercy because he is liable, the inspector is liable, and your lawyer is a scumbag. I could go take care of this in court and I could get a law degree out of a Fruit Loops box and take care of this situation. Am I right, George? Am I missing anything?

[George Kamel]

No. This is The Ken Coleman, Esq. Energy you need.

[Dave Ramsey]

I'm more pissed off than you are. Mary. This is America.

[George Kamel]

I'd be taking that builder to the cleaners with a scary attorney right now.

[Dave Ramsey]

I'd go to the local news. They love this crap.

[Mary]

This is. We tried the local news. They told us it was a legal issue.

[Dave Ramsey]

Oh, my gosh. Okay, Mary, all you do is make excuses for why you're getting abused.

[George Kamel]

What? Okay, so what's the ramifications here of you living in a home that has no record? Are they going to evict you?

[Dave Ramsey]

I assume you can't even live in it.

[Mary]

No, we can't Live in it. So we actually don't live in it.

[George Kamel]

Are you renting with. Staying with family? Okay, so you're renting right now, but you still make payments. Have you talked to the lender that they basically have bad collateral here?

[Mary]

Yes. They said they didn't care.

[George Kamel]

They don't care. You still owe us the payment every single month.

[Mary]

Yes.

[George Kamel]

And you can't sell it. I think your only way out of this. And again, I'm not an attorney. This is for your attorney to deal with. You got to sue this builder to get your money back.

[Dave Ramsey]

Get an attorney.

[Mary]

What we're trying to do, get rid of your current.

[George Kamel]

Do not file bankruptcy. That's not the solution here. The solution is to take this builder to court, sue them, potentially get the inspector involved because they clearly can't do their job well, and then collect on whatever the settlement is. I wish I had better news. I mean, we have no, no power in this. But I'm going to tell you, don't do anything drastic like bankruptcy. At this point, you're just going to have to float the payment until this gets sol. Which would light a fire under me.

[Dave Ramsey]

I wouldn't even float the payment. I'd be sitting in the. I'd be sitting in the banker's office. The lender going, I'm not paying you a cent because all of you are going down. But after I got a lawyer who had a brain and who wasn't going to take advantage of you guys.

[Mary]

Yeah.

[George Kamel]

I think a one find a new attorney.

[Dave Ramsey]

New attorney with a backbone. Somebody who wants to destroy somebody. This is wrong.

[George Kamel]

What a weird situation.

[Dave Ramsey]

Oh my gosh. I got a headache.

[George Kamel]

Thanks for sharing, Mary. I hope it works out for you guys.

[Dave Ramsey]

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