I bought a house in 2009 through {seller} in Corpus Christi, TX. I have made all payments, but I received a notice to accelerate the loan due to {seller} not making the last 4 payments, nor the taxes for last 3 years. The notice is a 20 day notice to pay arrears in full of $5000, plus the $14k due in taxes. My monthly payment of $1391.70 included taxes. What recourse do I have against the seller? I have contacted the bank and told them I can catch up the arrears and make arrangements on the taxes with the county. I told the bank they can draft the mortgage payments out of my account. My credit isn't good enough to refinance or I would and get the house out of {seller} name. The thing is, I just gave {seller} $10k to bring down the principal, and they haven't applied it. The house across the street got the same certified letter, and they are in the same situation. I think there probably are a lot of people that {seller} did this to.

Can you stop the payment? Is the contract for deed filed with the county?

The first thing I would do is make sure the contract is recorded so your interest in the property is noted. The next thing is to sue the seller for what they were supposed to have paid and didn't.

If they haven't been filling their contractual obligations what does the contract say about them defaulting? It is possible you could sue to have the balance you owe on t he contract reduced or eliminated so that the contract is fulfilled and you can have the property transferred to your name.

If this seller (please don't post the name since we don't know their side) did this to other buyers, you might have a class action suit.

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Originally Posted by drytech;

... What recourse do I have against the seller? ...

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An action to assume the seller's interest; and to void your obligations under the contract. You then should be able to recover what you have to pay the bank less what you would pay the seller, had the seller not breached your contract.