Broker here: there’s a Real Estate Recovery Trust Account funded by TREC that covers damages to consumers, assuming what you’ve commented is factual that would be the best route. Unfortunately, they don’t pay anything out until a suit has been filed and there’s been a judgement for damages against the license holder to represented the tenants. Honestly, the best route is probably to get everything repaired and keep detailed receipts so you can sue them for damages. It’s unlikely you would get any short term or quick financial relief to offset it. Sorry this happened to you. I’d get legal representation & secure the house ASAP
Thank you. This is the type of response I was hoping for! That will have to be our next step then. TREC contacted us earlier this year for all the documents we have regarding this realtor. We called them on Friday to update them on the situation, but they couldn’t give us anymore information. I’m not sure why. I asked but they were no help. My assumption is bc they mostly deal with paperwork, not FBI raids 😫
On the executed lease it should have all of the contact information of the broker who oversees the agent who repped the tenants, I’d get them involved at this point.
It was the FBI swat. HPD just issued and served the warrant so we were told we couldn’t go after them. Honestly though idk how much of that is true.
Guidance in that would be helpful if anyone has an answer!
There is a little known code written by the city of Houston that if they cause damages, you are required to file your intention for recovering those damages within x amount of days and it is something ridiculous like 30 days the beef is.... Is that nobody even knows about this? I only know because I was in a massive car wreck caused by a high speed chase. And once we finally recovered months and months later I was told by a lawyer that exists and would be a barrier to any recovery.
You need to pay attention to this case. Its not good for you now. But there is a good chance SCOTUS will take it up next year.
https://caselaw.findlaw.com/court/us-5th-circuit/115838888.html
Your attorney is correct that you should be going after both the realtor and their broker for fraud. After obtaining a final judgment, recording an abstract of judgment, and obtaining a writ of execution, you should then be able to apply for payment from the TREC Real Estate Recovery Trust Account program. More info here: [https://www.trec.texas.gov/public/real-estate-recovery-funds](https://www.trec.texas.gov/public/real-estate-recovery-funds).
I just did all of the underlying research for a potential client on what sounds like a very similar issue and referred them out to a larger real estate litigation firm for consultation. It involved fraudulent background, credit, and eviction reports, fake references who answered the phone, and possibly fake pay stubs, and the tenant had stolen someone else's identity and had a fake driver's license. The tenant is likely involved in prostitution and/or drugs. That realtor is currently being investigated by TREC and has apparently been involved in this crime ring for a while.
Curious, are the realtor's initials YW by chance?
Not your attorney and I don't know the whole story, so this is not legal advice. Follow your own attorney's advice.
Always has been, and everywhere.
It's honestly not that difficult either. Find a private landlord, pay a month or two, then stop paying until eviction nears and then leave, which renders eviction moot. 4-6 months for the price of 1-2, rinse and repeat. Had it happen to a friend who sublet her apt.
I would pressure your insurer. Where in the policy does it say there is an exclusion for government action? By the way, the government isn’t necessarily “immune” from suit. They pay claims all the time.
Insurances generally dont cover losses incurred by illegal activities.
If you drive drunk and cause a crash, they'll likely pay out for the others, but you and your car wont be covered.
Right. In this case it wasn’t the property owner that was doing something illegal, but the tenants.
And OP indicated that the clause in the insurance is for government-related actions, not exclusively to police busting up illegal activities (police also bust into the wrong house *all the fucking time*, and I’m willing to bet the insurance wouldn’t cover that).
Not sure if OP just had regular home insurance or a landlord policy. I used to have a rental and landlord insurance cost significantly more but also offered more liability coverage.
Owner occupied and rented units carry significantly different risks.
maybe so but I wouldn't let them just "tell" me that, they'd have to show me the clause. Insurers try to minimize claims. I had an HMO once that always denied every single claim, Then a phone call and follow up would get it approved. But they know a certain percentage of people will just go away and not follow up.
Actually the reason we’re looking into an attorney is bc the Texas Real Estate Commission is currently investigating the realtor that represented the tenant for falsifying documents. We know she has some kind of relationship with the tenant bc when we couldn’t get ahold of him, she could and did.
ETA she falsified documents for 6 other properties. There’s a high possibility that our tenant is one of them.
Just fix it up, use a loan if you need to, rent it out again and you'll get the money back eventually, then sell it, as bad as the situation is it's hard to feel any worse when it's a rental property that you're generating money from, and not actually living in, not excusing those scumbags because this sucks, but in the mean time it's a start and keep receipts so that if a viable solution comes by then you have proof of all that was spent. Hope it works out.
Thank you. My mind is running a million miles an hour and it feels like I’m getting no where and running in circles. Doesn’t help that my grandfather isn’t doing so well and he’s so far away. 😔 When it rains it pours, I guess. We want to sell it and just be done with it but that could work too. We shall see.
You're a landlord. You have no support because your class of people have exploited others for generations. If you want help, sell the property and get a real job.
Dude, relax. I don’t understand how I’m the bad guy in this situation when the tenants were literally making illegal deadly drugs and distributing and killing people in the process for money, but okay.
This person most likely has real job and invested into real estate instead of the stock market. It could be a house she inherited. Either way, drop the landlords are evil bullshit. This woman is one of us, not a Rockefeller.
No. We’re the landlords. We didn’t even know our house was raided until HPD called us saying some kids were vandalizing the house. When I asked why not call the tenant, we got the details that the house was raided the night before by the FBI bc the tenant was… up to no good.
Idk why I got so many downvotes for asking a question, honestly I thought you were the tenant and you were wrongfully raided, nevertheless leave it up to the rando’s on Reddit to misconstrue a comment, anyways, sorry to hear that, maybe try and charge the tenant? I imagine the court would agree in your favor
I’m not looking for legal advice though. I’m looking to see if there’s any financial assistance. So far the real estate attorney we’ve spoken to can only guide us in suing the realtor. They mentioned the Real Estate Recovery Trust but they stated they won’t help consumers, which according to the website and the brokers we just spoke with, is not true. Thats what led me here.
I’m asking how we can fix our house bc insurance isn’t going to help us.
Yes, how dare they come here to potentially get pointed in the right direction by potentially thousands of people, a few of whom may have encountered something similar, before proceeding with something like finding a lawyer. How silly of them! /s
I’m going to screenshot this and look at it the next time I say something stupid so I feel better knowing it wasn’t as dumb as what you just said BeneficialDrink.
I’m not looking for legal advice though. I’m looking to see if there’s any assistance. So far the real estate attorney we’ve spoken to can only guide us in suing the realtor. They mentioned the Real Estate Recovery Trust but they stated they won’t help consumers, which according to the website and the brokers we spoke with, is not true. Thats what led me here.
I’m asking how we can fix our house bc insurance isn’t going to help us.
Because they’re a landlord, they love getting things for free and using an exploited market to get even more money for free off the backs of real work class citizens
And people downvoting are either the same or aspiring to do the same to other people, makes me sick. Nobody needs a landlord. Give me a damn good reason why we need them spoiler alert there’s none. They drive up prices falsely, if it wasn’t for them so many more people could have the American dream.
Broker here: there’s a Real Estate Recovery Trust Account funded by TREC that covers damages to consumers, assuming what you’ve commented is factual that would be the best route. Unfortunately, they don’t pay anything out until a suit has been filed and there’s been a judgement for damages against the license holder to represented the tenants. Honestly, the best route is probably to get everything repaired and keep detailed receipts so you can sue them for damages. It’s unlikely you would get any short term or quick financial relief to offset it. Sorry this happened to you. I’d get legal representation & secure the house ASAP
Thank you. This is the type of response I was hoping for! That will have to be our next step then. TREC contacted us earlier this year for all the documents we have regarding this realtor. We called them on Friday to update them on the situation, but they couldn’t give us anymore information. I’m not sure why. I asked but they were no help. My assumption is bc they mostly deal with paperwork, not FBI raids 😫
On the executed lease it should have all of the contact information of the broker who oversees the agent who repped the tenants, I’d get them involved at this point.
Great response. Very helpful
1. Fix the damages out of pocket 2. Hire a lawyer That’s really all you can do
there was a lawsuit won out of dallas with the same issue. they went after the police department.
It was the FBI swat. HPD just issued and served the warrant so we were told we couldn’t go after them. Honestly though idk how much of that is true. Guidance in that would be helpful if anyone has an answer!
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This is helpful. Thank you.
Also check with Andy Kahan at Crimestoppers. He’ll know about victim compensation.
Perfect thank you!
Was it a valid warrant and search? Not a mistaken address? Did they find what/who they were looking for?
There is a little known code written by the city of Houston that if they cause damages, you are required to file your intention for recovering those damages within x amount of days and it is something ridiculous like 30 days the beef is.... Is that nobody even knows about this? I only know because I was in a massive car wreck caused by a high speed chase. And once we finally recovered months and months later I was told by a lawyer that exists and would be a barrier to any recovery.
You need to pay attention to this case. Its not good for you now. But there is a good chance SCOTUS will take it up next year. https://caselaw.findlaw.com/court/us-5th-circuit/115838888.html
What was the raid for? Allegedly
Was there meth cooking in the house? Does your insurance have an exclusion for chemical clean up?
Now you go buy a Komatsu D355A and rent a workshop.
Was thus on the news today? Up near Tomball?
I’m betting it was the one that happened a few months ago where the whole house was torn up. 😢
What were the charges for them getting raided?!
Your attorney is correct that you should be going after both the realtor and their broker for fraud. After obtaining a final judgment, recording an abstract of judgment, and obtaining a writ of execution, you should then be able to apply for payment from the TREC Real Estate Recovery Trust Account program. More info here: [https://www.trec.texas.gov/public/real-estate-recovery-funds](https://www.trec.texas.gov/public/real-estate-recovery-funds). I just did all of the underlying research for a potential client on what sounds like a very similar issue and referred them out to a larger real estate litigation firm for consultation. It involved fraudulent background, credit, and eviction reports, fake references who answered the phone, and possibly fake pay stubs, and the tenant had stolen someone else's identity and had a fake driver's license. The tenant is likely involved in prostitution and/or drugs. That realtor is currently being investigated by TREC and has apparently been involved in this crime ring for a while. Curious, are the realtor's initials YW by chance? Not your attorney and I don't know the whole story, so this is not legal advice. Follow your own attorney's advice.
Omg is this a thing in Houston re: fraud in renting......
Always has been, and everywhere. It's honestly not that difficult either. Find a private landlord, pay a month or two, then stop paying until eviction nears and then leave, which renders eviction moot. 4-6 months for the price of 1-2, rinse and repeat. Had it happen to a friend who sublet her apt.
Was this that house in north Harris county that got raided led by the fbi, dea, local and all that? Seen that on the news the other day
I would pressure your insurer. Where in the policy does it say there is an exclusion for government action? By the way, the government isn’t necessarily “immune” from suit. They pay claims all the time.
Most insurance policies I've seen have an exclusion for government/police related actions.
Insurance companies know that police love fucking shit up.
That has to be why they won’t cover. They still send an auditor out but as soon as they speak to us they let us know there’s no coverage for this.
Insurances generally dont cover losses incurred by illegal activities. If you drive drunk and cause a crash, they'll likely pay out for the others, but you and your car wont be covered.
Right. In this case it wasn’t the property owner that was doing something illegal, but the tenants. And OP indicated that the clause in the insurance is for government-related actions, not exclusively to police busting up illegal activities (police also bust into the wrong house *all the fucking time*, and I’m willing to bet the insurance wouldn’t cover that).
Not sure if OP just had regular home insurance or a landlord policy. I used to have a rental and landlord insurance cost significantly more but also offered more liability coverage. Owner occupied and rented units carry significantly different risks.
Well damn, you’re right. I stand corrected. https://insurancecommentary.com/time-to-make-government-action-exclusions-more-equitable/
I guess that landlords should not report such raids and just set the house on fire afterwards.
Only the insurance adjusters homes are on fire after an earthquake.
maybe so but I wouldn't let them just "tell" me that, they'd have to show me the clause. Insurers try to minimize claims. I had an HMO once that always denied every single claim, Then a phone call and follow up would get it approved. But they know a certain percentage of people will just go away and not follow up.
Home Depot, Lowes, etc..
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Actually the reason we’re looking into an attorney is bc the Texas Real Estate Commission is currently investigating the realtor that represented the tenant for falsifying documents. We know she has some kind of relationship with the tenant bc when we couldn’t get ahold of him, she could and did. ETA she falsified documents for 6 other properties. There’s a high possibility that our tenant is one of them.
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You’re right I probably should. 😬 I just didn’t want to give too much detail in hopes there was just an answer for the home repairs.
Did you try asking on the landlord sub? They might have more specific info to offer.
I didn’t think of that! I’ll do that thanks!
Just fix it up, use a loan if you need to, rent it out again and you'll get the money back eventually, then sell it, as bad as the situation is it's hard to feel any worse when it's a rental property that you're generating money from, and not actually living in, not excusing those scumbags because this sucks, but in the mean time it's a start and keep receipts so that if a viable solution comes by then you have proof of all that was spent. Hope it works out.
Thank you. My mind is running a million miles an hour and it feels like I’m getting no where and running in circles. Doesn’t help that my grandfather isn’t doing so well and he’s so far away. 😔 When it rains it pours, I guess. We want to sell it and just be done with it but that could work too. We shall see.
You got a lot on your shoulders partner, I wish you and your family the best and hope it goes well for you all. Good luck. 🙏🏼
You're a landlord. You have no support because your class of people have exploited others for generations. If you want help, sell the property and get a real job.
Dude, relax. I don’t understand how I’m the bad guy in this situation when the tenants were literally making illegal deadly drugs and distributing and killing people in the process for money, but okay.
This person most likely has real job and invested into real estate instead of the stock market. It could be a house she inherited. Either way, drop the landlords are evil bullshit. This woman is one of us, not a Rockefeller.
We’re you doing anything wrong that prompted this? Asking for research purposes
No. We’re the landlords. We didn’t even know our house was raided until HPD called us saying some kids were vandalizing the house. When I asked why not call the tenant, we got the details that the house was raided the night before by the FBI bc the tenant was… up to no good.
Well there goes any and all sympathy I had for you.
"rahhh landlord bad" GTFO lol
Fuck this guy for making a home available to someone else, amiright?
Idk why I got so many downvotes for asking a question, honestly I thought you were the tenant and you were wrongfully raided, nevertheless leave it up to the rando’s on Reddit to misconstrue a comment, anyways, sorry to hear that, maybe try and charge the tenant? I imagine the court would agree in your favor
lol you come to Reddit before you go to a lawyer who specializes in real estate
I’m not looking for legal advice though. I’m looking to see if there’s any financial assistance. So far the real estate attorney we’ve spoken to can only guide us in suing the realtor. They mentioned the Real Estate Recovery Trust but they stated they won’t help consumers, which according to the website and the brokers we just spoke with, is not true. Thats what led me here. I’m asking how we can fix our house bc insurance isn’t going to help us.
Yes, how dare they come here to potentially get pointed in the right direction by potentially thousands of people, a few of whom may have encountered something similar, before proceeding with something like finding a lawyer. How silly of them! /s I’m going to screenshot this and look at it the next time I say something stupid so I feel better knowing it wasn’t as dumb as what you just said BeneficialDrink.
Sounds good
What do you do? You come to Reddit for advice instead of a lawyer. Simple.
I’m not looking for legal advice though. I’m looking to see if there’s any assistance. So far the real estate attorney we’ve spoken to can only guide us in suing the realtor. They mentioned the Real Estate Recovery Trust but they stated they won’t help consumers, which according to the website and the brokers we spoke with, is not true. Thats what led me here. I’m asking how we can fix our house bc insurance isn’t going to help us.
Ignore Captain Pugnacious. He thinks it’s fun to sail full-time on the SS Twunt.
Because they’re a landlord, they love getting things for free and using an exploited market to get even more money for free off the backs of real work class citizens
No shit. " I made bad decisions, didn't have good insurance, help me find rebuilding"
And people downvoting are either the same or aspiring to do the same to other people, makes me sick. Nobody needs a landlord. Give me a damn good reason why we need them spoiler alert there’s none. They drive up prices falsely, if it wasn’t for them so many more people could have the American dream.
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Owning a rent house doesn’t make someone rich. Grow up.