'How Did Nobody Catch This?' - Couple In Miami Is Sold A Home Illegally And Asks The Ramsey Show If They Should Claim Bankruptcy

Buying a home is supposed to be a milestone moment, but for Mary, a first-time homebuyer in Miami, it turned into a nightmare. She and her spouse purchased what they believed was a legally built home, only to discover later that the property technically didn't exist in county records. Seeking advice, Mary called into "The Ramsey Show" to ask financial experts George Kamel and Ken Coleman whether filing for bankruptcy was the right move.

A Shocking Discovery

Mary explained that after purchasing their home in April 2023, they attempted to make improvements, such as installing fencing and encapsulating the crawlspace. However, when the property was surveyed, they learned it wasn't officially recognized by the county. There were no permits, no Certificate of Occupancy, and no legal record of the house's existence.

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When Kamel asked if they had purchased the home without seeing it, Mary clarified that they had done everything by the book—working with real estate agents, lenders, and inspectors. Yet somehow, the sale still went through. "I mean, aren’t there titles to be cleared?" Kamel asked in disbelief.

A Broken System

The couple had taken out a U.S. Department of Agriculture loan for the price of $259,000 after their $12,000 down payment. Even with standard procedures in place, including an inspection, no one caught the issue. To make matters worse, the home, built on an old 1950s foundation, was deteriorating—developing mold, sinking floors, and leaning walls.

Mary and her spouse initially attempted to resolve the issue without legal intervention, approaching the builder to repurchase the home. When that failed, they hired an attorney. Unfortunately, progress stalled, leaving them stuck paying for a house they couldn't live in while also renting another place to stay.

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A Heated Response

Coleman didn't hold back. Expressing frustration, he told Mary, "You are going to have to stand up and fight." He emphasized that the builder, inspector, and potentially even the lenders had failed them and should be held accountable. Kamel agreed, adding that bankruptcy wasn't the right path. Instead, he advised pursuing legal action against the builder and inspector to reclaim their money.

When Mary mentioned that their attorney hadn't made significant progress, Coleman urged them to switch lawyers immediately. "Get an attorney with a backbone," he said, advising them to find someone aggressive enough to take the case to court. He even suggested going to the media, though Mary revealed that local news stations had dismissed it as a legal issue.

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The Next Steps

While Kamel and Coleman couldn't offer legal advice, they strongly discouraged bankruptcy, stating that it wouldn't solve the root problem. Instead, they suggested Mary and her spouse:

• Hire a new, proactive attorney
• File a lawsuit against the builder and inspector
• Notify the lender that they were sold bad collateral
• Refuse to continue making mortgage payments until a resolution was found

The conversation on "The Ramsey Show" highlights a serious flaw in the homebuying system. If a home can be sold illegally even with professional oversight, how many other buyers might face similar issues? 

For now, Mary and her spouse are left fighting for justice, hoping the right legal action can turn their dream home disaster into a recoverable situation.

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