Our contract for deed clearly states that the seller is to pay all taxes up to Januaryv2012. The seller has not paid 2010 or 2011 taxes and now the county wants to sell the home. Can I use the monthly house payment to pay on the taxed instead of making the payments to her or will she be able to say we are in breach of contract for not making the house payments?

You should pay the taxes to avoid losing the property. You can then send a letter to the seller stating that, since he was required to pay the taxes and you were forced to do so, then you are deducting the cost of the taxes from your payments.

We do not have the 762.23 to pay all at once so we want to use our monthly house payment of 382.00 until the taxes are paid in full. We want to make sure she can not take the house away from us by not making our monthly payment directly to her!

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Originally Posted by mcmullin7

We do not have the 762.23 to pay all at once so we want to use our monthly house payment of 382.00 untill the taxes are payed in full. We want to make sure she can not take the house away from us by not making our monthly payment directly to her!

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I'm sorry but you can't just decide to do that. You have to inform the seller, in advance, that you are going to do that and give him time to make the payments first.

Only then can you withhold payments to him to use to cover his breach.

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Originally Posted by ScottGem

I'm sorry but you can't just decide to do that. You have to inform the seller, in advance, that you are going to do that and give him time to make the payments first.

Only then can you withhold payments to him to use to cover his breach.

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We sent a certified letter in June of 20012. She then had a leagel aid lawer send a letter to us stating that the seller has mad payment arrangements. Again we took her for her word. We got a letter today from our county stating the taxes still have not been paid. We also found out that she never did make arrangements to make payments. Now I plan on sending her another certified letter letting her know we will now withhold the house payments along with copies of everything I have gotten from the county.

Make sure the letter quotes the contract and states that since she is in breach x clause in the contract you are using your contract payments to protect your interest in the property.

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Originally Posted by ScottGem

Make sure the letter quotes the contract and states that since she is in breach x clause in the contract you are using your contract payments to protect your interest in the property.

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Thank You
Sounds like I just need to revise my first letter.