Check out some similar questions!

Gettingscrewed · Jun 8, 2007, 10:17 AM

Wow, been reading others here goes!
So yeah were suckers.
We moved out of our "installment agreement for warranty Deed" home 40 miles away last June. I tried then to give our landlord/ ( a realitor) a 60 day knotice. At that time he told us that we "owned" the home. The only option we had was to sell the home.
In December I tried to call his bluf a bit, stalled on the payment he said we could rent, contract, or rent to own the home. He also threatened to get a lawyer. We again paid.
Now a year later the last email we got said
"Her's the bottom line - when we sold you the house on contract for deed we had an adjustable rate mortgage good for only so many years. The note became due May 1, 2007 so the bank refinanced the balance at the new rate (that's why the payment went up). We had to put collateral on the house when you purchased it. We are developing a new subdivision which we are doing on borrowed money. We need to free up the debt on this house (1303 Marion) so we can borrower more money. The only way to do that is to either have you assume the loan at the bank or put it on the market and get it sold so we can get our name off the note. If you need help cleaning up around their to get it on the market I will do whatever I can to help. We are not trying to be difficult, we are like you we just want to move on with our lives. If you need help, give me a call and I'll help you do what I can. If we find someone with good credit, the bank will let them assume the loan.
Yes I know we need to get a lawyer. But any other advice? I had drafted a letter and was going to send him the keys telling him it is 6 years later, we were suppose to re-negotiate after 3,(which we didnt) now after 6 he tells me the payment has changed and the contract is up, and sounds like we have 2 choices: get a loan which we can't or he wants to sell the house! OK, he wants to terminate the contract... here are your keys... your not being difficult... if that is what you need to do we understand.
He is a realitor! Ahhhhhhhhh
Thanks:mad:

ScottGem · Jun 8, 2007, 10:50 AM

I'm confused here. You had a contract, what did that contract say? That is the crux of the matter. Without knowing what the terms of the contract were we can't advise. Normally in a contract for deed, you pay a down payment and a monthly amount. At the end of the term you get a deed. Until them the owner retains ownership. If you default on the contract, generally the only recourse of the owner is to cite you in default and keep all monies paid, then try to resell. Unless there are additional default penalities written into the contract, the owner will have no recourse, unless you damaged the property.

So you need to read and understand the terms of the contract.

Gettingscrewed · Jun 8, 2007, 10:51 AM

Another question about mine.
We have been paying 2 house payments for a year and Im tired can you tell?
Our title is not Contract for Deed it says Installment Agreement for Warranty Deed

Can someone maybe explain this section.

10. In the event of the failure of Buyers to make any of the payments, or any part thereof, or perform any of the Buyers' covenants hereunder, Seller shall give Buyers written notice of any such timely cured By Buyers, Seller may declare this Agreement forfeited and Buyers' rights herein shall sease upon reciving notice of such declaration of forfeiture. Seller shall be entitled to exclusive possession of the premises concerned not later than 14 days from the date of sellers written demand is served upon Buyers. Seller shall additionally be entitled to payment from Buyers of all sums necessary to remove any liens or encumbrances against the premises caused, created or permitted by buyers or to otherwise clear the title thereto, together with the seller's reasonable costs, expenses and attorney's fees incurred in regard thereto.Seller shall be entitled to receive all escrowed funds and documents upon due and acceptable proof to escrow agent of sellers entitlement thereto. all payments recieved by seller shall be forfeited and determined and such payments shall be retained by seller in full satisfaction and as liquidation damages by seller sustained and such event, seller shall have the right to reenter and take possession of the property aforesaid.

Oh, crap... I just really paid attention to that as I typed it. If that was fancy talk for if we stop making payments... they can give us notice and kick us out, charge us for the attorney, and keep our money... like rent... and we could have walked away... you will all hear me scream from my computer!
We have not lived in that house for a year! And have been making house payment on our home we live in and that payment because he said we have to! But typing every word made me realize... that might have been what it said!
Oh my gosh!
Ill be waiting for responses..
They won't need to hire a lawyer to kick us out... cause we have been out for a year now!
AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
:mad:

Gettingscrewed · Jun 8, 2007, 10:54 AM

Well I've been trying to figure this out for a year now! Can you look at my other post! I just posted section 10. Of my "installment agreement for deed" and I might have realized my own stupid self what is going on... (wiping writing of my forehead) would you mind looking at my other post?
I know that is normal contracts... you snooze you loose... but I've been scared to stop paying!
He keeps telling me "its our house"
We have to sell it!
Blah blah

ScottGem · Jun 8, 2007, 10:57 AM

Its not a good idea to start different threads referencing the same question. So I'm going to request the threads be merged. But if you read my answer to your other thread, it confirms what you said in this one. The thing is, they probably can keep any monies you continued to pay.

Gettingscrewed · Jun 8, 2007, 11:02 AM

Oh, I don't know how to merge the questions I'm sorry! No I'm not worried about them keeping the money! I just want to know if I can default in the contract. I don't want the house. He says (verbaly) I have to keep it. I was typing section 10 to see if I could stop paying payment and loose money I had tied up in the home?:confused:

ScottGem · Jun 8, 2007, 02:15 PM

Without seeing the whole contract I can't say for certain. But unless, there are other penalities involved, it would appear you can just walk away and there is little he can do about it.

Gettingscrewed · Jun 8, 2007, 05:20 PM

We signed it in 2001 and it says
"should buyers be unable to refinance the balance at the end of the three year term seller shall at that time discuss and re-negotiate terms and conditions for further contract conditions. All payments made by buyers to Seller, shall first be applied to the interest accrued on the principal balance and the remainder of the payment applied to the principal balance."
We never discussed that after a three year term? I was wondering if that meant this contract alone was only good after 3 years.
I totally understand that with out seeing the whole contract that you can not totally understand it.
There are places that say we are responcible for property taxes, THAT THE WARRANTY DEED SHALL NOT BE PLACED OF RECORD IN ***** COUNTY ILLINOIS, normal wear and tear, if we fail to pay taxes, seller may elect to pay such items and any amount so paid, shall become an addition to purchase price per annum until paid.

I just actually was wanting to get peoples oppinions on what might happen if I default and stop paying payments. I feel like we are being taken advantage of by this realitor who could just take the home back and sell it. Or Do a new contract.
We have been making 2 house payments for a year and it is strapping us.

ScottGem · Jun 8, 2007, 06:56 PM

Most contract for sale deals are similar to what you have. Some include a longer term, others a short term with a balloon payment, the idea being that the buyer can obtain financing by the time the balloon is due.

I believe you were taken advantage and might even have a cause of action against the realtor. But I can't be sure without seeing the whole contract. You really should consult a real estate attorney. You can probably get a free consultation.

Unless the contract specifies some other penalties other than default of monies paid, then you probbly are in the clear to just stop paying. It might, however, have an affect on your credit rating.

Fr_Chuck · Jun 8, 2007, 07:40 PM

The one main issue is was there a actual transfer of the deed, ( I would say no) and they can call it anything they want but it is just a fancy name for a contract for deed. ( an installment agreement is a contract) and a warranty deed is just one form of deed)

But basically if you never had the actual deed in your name, you did not have a mortgage, you did have a contract ( installment agreement)

And parts of the contract may even be against state law, it is not uncommom for people ( even real estate people and sometimes esp them) to word things they way they want the contract, they know buying and selling real estate, but not contracts for deed.

But yes, without reading every word on every line we would not know, and we could not do that if you asked, since then we are going beyond general questions to actual legal work.

Gettingscrewed · Jun 9, 2007, 08:00 AM

Thank you so much though, just the information you have provided is just feeding my common sense reading of the contract myself.
Thank you Fr_chuck, I had been reading you some of your post. And no, actual transfer of any deed, the loan/morgage in there name, tax bill in there name, just the contract is our names. No where else.
Any more input from anyone else would be great thank you.

Gettingscrewed · Jun 19, 2007, 01:30 PM

Wow this has really gotten out of hand and I really wish I had more resources. I have tried to get out by leaving one key on the property and emailing them. They have told me 2 times in the last week they need to put it on the market. So I finally told them "if they want the house back...blah blah..." I got a I believe you have misunderstood, we don't want the house back. You are buying it contract for deed and we want you to take over the mortgage on the house. We asked that you get it ready to put on the market for sale, but you have not fixed up the place to do so. You indicated you wanted to get $7000 above sell price of the house, do you remember that? If you had it ready for selling we would both be out of this debt by now. I'm afraid it looks like we are going to have to go see a lawyer"
I could just cry... I feel like I'm being so taken advantage of. Afraid to stand my ground because they are realitors.
I looked up lawyers in the area that deal with realestate and they are a ways from me! Ahhhhhhh