Tom Pike, Trustee
Hidden Fees and Clauses in Contract

When we first agreed to purchase our first home from Mr. Pike, it was "As Is." We started off renting. We were definitely aware of all the damages and repairs needed to the home. Which were foundation, plumbing, and electrical (of which electrical is not stated in the contract or deed). We agreed to fix them as we occupy. On May 27, we were called in to sign some additional papers which we agreed to a down payment of $3000.00 in which $500 was taken off due to down payment we paid during our rental time. Of which is not included in the contract or deed or Amortization Schedule. We had a added clause to pay an additional $3990.00 in which we agreed to pay or face losing the home and money we already put into it (including repairs).

In September, we were having a minor financial difficulty, where our check was delayed, so we called Mr. Pike to inform him that we would be a few days late. His reply was, "Okay, and I am glad you called to let me know." After we made the payment on the 27th or so of September, unawares to us, the check that we wrote was returned because when we ordered new checks, the bank started off their check number in their system at 402 instead of 401 (as the check was in the checkbook). This, of course caused the check to be recorded as lost or stolen. So instead of Mr. Pike calling us so that we could fix the situation, he made it as though we did it on purpose and sent us our first threatening letter that if we didn't pay return check fees for $50.00, bank charge of $12.00, late fee of $65.00, by the 15th, we would lose our home.in which we paid on October 14, we made the payment for all that was asked with no resistance or questions.

Then on January 13, we received another letter about the Year End Statement. Showing we still owed $65.00 for late fees, $229.00 principal and that it was applied to our balance. Any additional payments (other than mortgage are to be mailed separately to his address and not to the bank. Later he realized that the $65.00 was paid and he sent a new letter. Shortly there was another letter on February 6, stating that the Property Taxes of $1,461.41, had not been paid and we had until February 20th to make the payment or we will be charged and forced to pay a collection agency. We received a bill from the Property Tax Office showing us when the Taxes were due, which was by February 29, then March 31, then April 30 and so on. We paid it on February 17. Then we received a letter from a Lawyer named Bob J. Cavender, Attorney at Law, 11550 Fuqua #510, Houston, Texas 77034. The letter was certified, stating that this was a demand letter for payment of past due installments and Notice of Intent to Accelerate the Unpaid Prinicpal Balance and Accrued Interest, because he came to the conclusion that we failed to pay the Property Taxes. As a reult, we have 20 days from the date of the letter to pay or face foreclose on the home.

I called Mr. Pike and his reply was, "Is someone threatening your life?" Then he said he had to pay $650 for a lwayer to draw up these papers and we should have sent him a copy of the receipt of Property Tax payment. Then he asked if we wanted to keep the home.

We have put a lot into the repairs of this home and after having a real estate agent look over the deed and found that he charged us Annual Interes Rate on Unpaid Principal from date: 12%. And the Annual Interest Rate on Matured, Unpaid Amounts: Maximum Legal Interest Rate established by law: 18%. Also he had us to sign a "Deed In Lieu of Foreclosure" that he said was to protect us in case we faced foreclosure. We signed trusting that this person was an honest businessman, and had our best interest at heart. We need to know if we have any law that may protect us from all these threats and being forced to pay for bills that are not due.

Company: Tom Pike, Trustee
Country: USA
Address: 2800 E Broadway #C130 Pearland TX 77581
Phone: 7139220522

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