Houston family sues over mortgage deal, claims $136K paid and foreclosure possibility looms

A Houston family is fighting to keep their home after paying more than $136,000 and now they’re taking it to court.

Latasha Parker and her husband are suing over a financing arrangement known as a wraparound mortgage, alleging fraud, usury, and deceptive business practices that have left them facing possible foreclosure.

“It’s about now about 150,000 plus,” Parker said when asked how much money she’s paid.

Parker’s lawsuit names private investors, August REI, and TL Global, LLC, a company that connects buyers with real estate investors using owner-financing.

The Parkers say they thought they were buying a home safely, but later said the deal violated Texas law. Their lawsuit claims the 10.9% interest rate was illegal under Texas usury limits, and that the deal triggered a due-on-sale clause in the seller’s mortgage putting them at risk of foreclosure despite making payments.

TL Global, named in the lawsuit, says they didn’t violate state usury limits.

“The whole situation seems to be designed to get people to get into a transaction with that dream of home ownership and then foreclose on them a few months later when they can’t survive the situation that they put themselves in,” said Benjamin Campagna, the Parkers attorney.

Wraparound mortgages let a buyer make payments to a seller who still owes on the original mortgage. These deals are legal but risky. If the seller stops paying their bank, the buyer can lose the home, even if they’re current.

The Parkers say they weren’t told about that risk. But TL Global disagrees.

In a detailed statement to KPRC 2 News, TL Global said it acted properly and that the situation resulted from confusion not wrongdoing.

“The transaction was handled lawfully, transparently, and in good faith,” the company said. “There was full disclosure and mutual understanding.”

TL Global says:

• It acted only as an educational facilitator, not a lender or seller.
• The Parkers completed a required homebuyer education course, scoring 108% on the test.
• The buyers were told to pay the investor directly at first, then transition to August REI, a third-party servicer.
• The Parkers mistakenly tried to pay the original mortgage lender instead, causing payment issues.
• After clarification, the Parkers still failed to resume consistent payments, with only three payments made between March and October 2025.

“If this were truly confusion, regular payments would have resumed,” the company said.

TL Global also says the investor’s mortgage has never been late and claims to have documentation proving it.

The Parkers argue they were misled and that the deal was unlawful from the start. Their attorney says wraparound deals like this one are often used to target families who can’t qualify for traditional loans.

They’re asking the court to rescind the deal, stop foreclosure, and return the money they’ve paid.

TL Global insists the Parkers received and signed all disclosures, including about the due-on-sale clause in the original mortgage, a clause that allows the lender to call the loan due, but doesn’t automatically prohibit owner-financing.

“All agreements were signed in writing before closing,” TL Global said. “There was no fraud, usury, or noncompliance.”

The case isn’t scheduled to appear in front of a judge until 2026. Until then, Parker says they’ll keep making payments.

“We’ll just continue to make the payments until it goes before the judge,” Parker said.