Company sold property it didn't own, suit says

Kelly Holleran Sep. 25, 2008, 7:29am

Brandy Wallace has filed suit against American Home Mortgaging Servicing, alleging it sold her a piece of property it did not own.

Wallace bought a piece of property at 513 North 37th Street in East St. Louis from Option One Mortgage Corporation, which is now American Home Mortgaging Servicing, on Aug. 29, 2007, according to a complaint filed Sept. 23 in St. Clair County Circuit Court.

Wallace did not know the company only owned a portion of the property and it never did inform her of the fact, the suit states.

It drew up the title work and deed for the portion of the property it did own, Wallace claims.

She relied on the company's representation and paid it the contracted amount, according to the complaint.

"Wallace has invested substantial sums of money in both parcels of the Property to restore the Property to habitable and marketable conditions," the suit states.

After she restored the property, Wallace claims she entered into a contract to sell it.

That was when she realized the bank only sold her a portion of the property, according to the complaint.

Wallace was not able to sell the property to the buyer and also recently discovered that the real estate taxes on the property she does not own "have been sold to tax buyers and that the property may soon be taken by the tax buyers," the suit states.

Wallace seeks actual damages in excess of $50,000, unspecified punitive damages, attorney's fees, costs of the suit and other relief the court deems just.

Douglas C. Grueuke of Belsheim & Bruckert in O'Fallon will be representing her.

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