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Update on El Paso Woman Facing Foreclosure

POSTED: Monday, April 11, 2011 - 4:19pm

UPDATED: Monday, June 11, 2012 - 11:12am

EL PASO – There's new information tonight on an exclusive Newschannel 9 Troubleshooters report. We first told you an El Paso woman almost lost her home-- blaming her problems on an escrow company. Then, last Friday, the owner of that escrow company came under arrest.

When Yadira Castro reached out to us, she had a foreclosure date looming over her head. She claimed she was making her mortgage payments through the escrow company, First Knight Escrow, but that the company, hadn't been paying the bank. On Friday, Laura Knight, the owner of the escrow company, was arrested for deceptive business practices in relation to another case. So, what does this mean for Castro?

Richard Roman is Castro's attorney.

“I've filed a lawsuit. there is a restraining order, potentially pertaining as well, to hold off on any foreclosure sales until we get this matter resolved."

Roman said he's also representing another person, who also claims to have been defrauded by Knight. He says her arrest will affect his case in court.

“If the money was misappropriated... it definitely plays into how I feel my client has been affected by the funds not reaching the appropriate place."

And, Laura Knight's legal entanglements don't seem to end there. The reason for her arrest last week, was “theft by check”, in relation to Leonor Armendariz's case. That woman claims Knight had stolen over $100,000 from her.

“She thought I wouldn't defend myself or do anything, because I'm old...that if I die, I leave everything, but no. I still have time to do something,” said Armendariz.

We tried reaching out to Laura Knight's attorney, Gino Estrada, for a comment, but he has yet to answer back.