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    confused72's Avatar
    confused72 Posts: 1, Reputation: 1
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    #1

    Oct 22, 2007, 05:28 PM
    Land contract default by seller?
    I am currently 3 years and 2 months into a 10 year land contract. The sellers contacted me last week and said they are getting divorced and want me to get a mortgage in my own name or they are going to put the house up for sale. I have paid $20,000 of $65,000. Is this legal for them to do?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Oct 22, 2007, 06:46 PM
    Hello confused:

    No. You have a contract. They just can't decide to discard it. I would see a real estate lawyer right away.

    excon
    Dr D's Avatar
    Dr D Posts: 698, Reputation: 127
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    #3

    Oct 22, 2007, 06:51 PM
    The seller cannot sell the property that they sold to you on a Contract for Deed. If that instrument was properly recorded, a title search would disclose that fact and prevent a sale to another party. Since they are getting a divorce, they need cash now. You might propose to them that you would be willing to cash them out now, if they discounted the remaining balance by an amount sufficient to cover the cost of your refinance, plus some extra for your inconvenience. You have legal "equitable interest" in the property even though you don't have title to it.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Oct 22, 2007, 08:20 PM
    Sorry, no they are obligated to keep your contract and can not just sell it.
    I would assume you have registered and recorded your contract at the court house, so it is showing on the recorded deed. ( just like you would a lien, then they can not sell it with a legal contract on it)

    They can sell the actual contract of course to another investor)
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