A Houston family has filed a lawsuit over a mortgage deal they say could cost them their home. Latasha Parker and her husband allege they entered a wraparound mortgage in good faith and have since paid more than $150,000.
They accuse the parties involved — including private investors, August REI, and TL Global, LLC — of fraud, charging unlawful interest, and using deceptive practices.
The complaint states the interest rate was 10.9%, which the Parkers argue violates Texas usury laws. The suit also points to a due-on-sale clause in the seller’s original mortgage that could trigger foreclosure despite the Parkers’ payments.
Wraparound mortgages allow a buyer to pay the seller while the seller keeps an existing mortgage active. If the seller defaults, the buyer can lose the home even if they are current on their payments. The Parkers say they were not informed of this risk.
TL Global denies wrongdoing. The company says it made full disclosures, did not exceed usury limits, and that any issues stem from confusion rather than misconduct. It claims payments on the original mortgage have remained current.
The Parkers’ attorney argues the transaction was unlawful and structured to exploit buyers who cannot access bank financing. The lawsuit seeks to void the agreement, stop foreclosure, and refund the payments made.
The case is set for a 2026 hearing. The Parkers say they will continue making payments until the court rules.
