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duker958 · Jul 10, 2008, 01:48 AM

Hi:
I will try to make this brief as possible. 21 years ago my mother purchased me a home; Im disabled and live on social security disability. To protect her investment in case something happened to me she placed a contract for deed on the property. The contract is between me and my mother. It's a basic contract for deed form, basically is states that the purchase price was 50k, I put 5k down with a balance of 45k at 10% interest with payments of 400 due monthly. Of course she never charged me anything, I never paid a dime. The property taxes are in my name and the contract for deed was recorded at the courthouse at the time it was drawn up. My mother passed away a short time ago and now her husband (my step father) wants to take my house. He is claiming I didn't live up to the agreement and is now telling me he is going to file eviction notice against me. Of course now the house is worth about 120k. The point is I have lived here over 20 years and my mother bought this house for me. My question is two fold. Do I have any options available to me? I cannot take out a mortgage because I don't make enough money off social security. Under the contract for deed can I sell this house and pay him the 45k balance? I hate to do this but if worst comes to worst Id like to get something out of the house. Im guessing my mother forgot all about the contract for deed otherwise she wouldve deeded it over to me. Is there anything I can do to keep my house?
Thanks

rockinmommy · Jul 10, 2008, 06:32 AM

If the house is worth $120K and you owe $45K it seems simple. You sell the house for as close to $120K as you can get. You pay off the $45K balance and move on down the road with the difference. That's a difference of $75K - which gives you lots of bargaining room to be able to discount for a quick sale, etc.

Now of course there are a TON of variables involving her estate, her will, who is in charge of what, etc. Does her "estate" currently hold the note? You stated that your step-dad is threatening to evict you? He can't evict you - he'd have to foreclose on you - assuming he has control of the estate to be able to do so.

With the amount of equity you have to work with I'd try for a quick sale and a quiet sale, while he's still busy bullying you. Once he catches wind of you attempting to sell he may get busy on foreclosure proceedings.

Of course an attorney would be very helpful in navigating all of this. I'd find one with both real estate and estate experience. They may tell you there's a way to fight the whole thing.

ScottGem · Jul 10, 2008, 06:53 AM

Before we can answer there are a lot of questions. The first is who's name is the deed in. The second question is was the house mentioned in mom's will or did she have a will? Also how was the contract worded. Was there any language in there about what happens upon the death of the contract holder.

Its not clear where this was a contract or a promissory note. In a contract for deed, there is a purchase price and a payment amount. Generally it states that the buyer will pay x amount per month for x months (maybe with a balloon payment) at which time the deed will be turned over. Its unusual for there to be an interest, but not impossible.

But if the deed is not in your name, then you can't sell it. You might be able to sell the contract, but the buyer would then have to pay all the arrears.

There are a lot of other factors here and you would probably be best getting an attorney who can help you through this.

duker958 · Jul 10, 2008, 07:37 AM

Thanks for the info. I meant to say foreclose where I said evict. There's things I just don't know the answer to. Im guessing the deed is in my mothers name as the house was purchased before she married her husband. I have not gotten a copy of her will yet so I don't know what it actually says. I know its going to be fairly complex and involved as my mother was very weathly and owned numerous properties around the country. The contract for deed is just that, the form was actually purchased at Staples, its very basic and says that the total purchase price is 50k less 5k down and the payments of 400 bucks are due on x day each month until the total of the purchase price and interest are paid in full. There's no mention of death of either party on the form.
I have applied for a legal aide attorney to help me with this matter. I was also told that Florida, the state in which I live, has an old law on the books that could apply to my situation since Ive lived in the house for so many years. Im hoping to get some answers when and if I get to talk to the legal aide attorney.
Thanks for all the input.

rockinmommy · Jul 10, 2008, 07:45 AM

Who's name is on the tax bill? If it's you, you can sell the house providing you can clear any title issues at the time of sale (that would mean paying off an outstanding lien.) It would be just like if you had purchased the house with a mortgage from XYZ Bank. If it's her, then it's a whole other ball game.

Definitely a lawyer is the way to go. Do you know who your mother's attorney is? Try contacting them and tell them you'd like information regarding her will.

ScottGem · Jul 10, 2008, 08:09 AM

Yes I agree with contacting your mother's attorneys. But the real key here is ownership. If the tax bills are coming to you, you may be listed as the owner. If so, then you could sell it. On the other hand, you mom may have bequeathed you the property in her will. She also may have gifted you payments over the years, since she didn't require them. So you may not be in arrears on the contract.

Like I said there is a lot of variables here. The first thing I would do is go to the county clerk and see how the deed is listed. The next thing is to find out what you were bequeathed under the will.

But, I think that if your evil step-father ;) tries to foreclose or evict (foreclose if you are the owner, evict if you aren't) and you go into court and explain that your mother bought the house for you, that payments were never asked for you stand a good chance of beating him.

duker958 · Jul 10, 2008, 10:28 AM

Thanks again for the input.. the tax bill is in my name, always has been. I have put in a call to one of my brothers so I can get info on who my mothers lawyer is. The reading of the will is Monday so I was just told. Obviouisly my step father has read the will unless he is just making idol threats and that can be very possible as he is a total jerk. He married my mother when he was 34 yrs old and my mother was 65 so that should tell you something about the guy. I have two brothers older then my 'stepfather'... again thanks for the info.

ScottGem · Jul 10, 2008, 10:33 AM

Good luck. Having the tax bill in your name is an indication but not a slam dunk about ownership. You do need to make sure of this.

I would also check to see why you weren't informed previously about the reading of the will.

And keep us posted as to what's happening. Let us know what you find out at the reading.