[Tuesday1377]

PLEASE HELP! My husband's father passed away two years ago and left his house to my husband and his sister. During probate, we bought the house on a Contract for Deed through a fellow I've known for a few years. The original terms are as follows: Selling price was 155,000, we put 15,000 down, in two years from purchase date (5/06) we provide our own financing at a cost of 175,000. We paid him 2,000-3,000 in cost at the time of the sale. It was our understanding that when we got our mortgage in 08 that the 15,000 would be our down payment on our new mortgage. Due to their financial difficulties, they say that their mortgage company is foreclosing on them. The trouble is that we have yet to be any later than 21 days on a payment. We are still not in a position to buy the house, and are looking to get out. The question is: Do we get our 15,000 back? Do we get the equity in the house? What if he sells it for more than 175,000? Do we get any money for the remodeling that we've done?

Note: My husband and I had to "buy" the house so that the money could go into probate. We are in his father's house.

[ScottGem]

I'm confused. What house did you buy? Why would you need to go into a contract for Sale of a house you inherited? If you bought another house then what does your inheritance have to do with anything.

As for the house you are buying, you need an attorney. If the bank forecloses then you lose everything since you don't have a recorded interest in the property. However, an attorney might be able to find a way to forestall the foreclosure. At the least, you should approach the mortgage lender and see if you can work out something whereby you can take over their mortgage.