We purchased a house for investment using a Contract for Deed in 1995. Due to some business IRS problems, we did not want to take a loan out at that time. The interest rate was great, and the bank held the mortgage. (The prior owners were in foreclosesure).
Everything went along great until 2004 when the old owners went into foreclosesure again, and decided our house would be great to take back (since it was completely redone, etc.). So, they attempted to evict my niece who was living there. They have attempted this four times, tried to remortgage twice, and tried to sell it once. I was successful in stopping them all of the previous times until today!
My niece had to go to court for another eviction (first time it went that far). She had documents up the ying yang, and a full year of documented payments to the bank. We had never been late, there had been no break in the contract on our behalf. The judge was immediately rude to my niece, she did not even look at the contract. She told the people that she could not give them "legal advice", then smiled at them and told them to give her a verbal eviction notice and tell her to be out in 30 days!! How could this happen?? I wasn't allowed in the court because I wasn't listed on the eviction notice. I am going to a very expensive attorney tomorrow, but I am a nervous wreck over this whole thing. I just can't understand this. How could they acturally be able to evict her when she isn't their tenant, and she lives in the house so that it does not remain vacant until I decide to build my business there?? Please, help!!

Ok, they evicted her, but that did not void your contract for deed, they will have to sue you for that. ** not sure abouht bank held the note, since in a contract for deed, there is no bank note that you do? Was this the sellers loan to the bank ?

Is there a clause in the contract that the home has to be owner occumpied?

First you should have had her an attorney, and asked for the case to be thrown out, since the sellers have no legal standing to ask for an eviction, since they don't have that authority under the contract.
And you should have been in court with her. Why was there no attorney then, And now you will have to file an appeal in the other case that the court had no authority to rule on it, since the seller had no standing in the case.

Next you need to consider counter sue for all your legal expenses for them being in violation of your contract for deed.
And you seroiusly need to get a loan to pay off the contract and get rid of these people.

The mortgage was in the original people's names. The bank still has the original mortgage. We have the contract with the old owners. Basically, we took over payments so they did not lose the house.
My niece did have an attorney. He filed for dismissal. They filed to reopen. She fired him, but did not tell me until today. I thought that the whole thing had been dismissed since that is what I was told she had told me when I asked her a couple of months ago.
I wasn't allowed to go into the courtroom with her because I was not named on the eviction papers. "I had nothing to do with this case."
I will definitely be counter suing these turkeys cause I'm sick and tired of them, but you can't get blood from a turnip. It will just make me feel better.

There is no clause in the contract that it has to be owner occupied. It's the heirs, designees, etc. etc. Nothing about just us occupying it. Besides I wouldn't live there!

Paying it off would be great, but since we just built a new home and still haven't sold our old one, I don't think I'll try that yet. I think I should wait until my old house is sold. I don't think the bank would go for that. Good credit or not.

I am just so upset about this judge. Believe me, I won't be voting for her!

Hello Pam:

The Padre gave you good advice. The problem I have is with your courthouse. Courtrooms in this country are public places. You cannot be barred from ANY court, unless special considerations are needed, like a juvenile rape case. A closed courtroom needs to asked for and granted.

I'd complain to the head judge IN WRITING sent certified, return receipt requested, and I'd let your local newspaper know that they're doing secret things in the public courthouse.

excon

Yes excon is correct, I did forget that except for Juv court and high profile cases court rooms are open,