[bakk0355]

We purchased a home on contract for deed one year ago. I lost my job, and we knew we were unable to make the payments without my income. We contacted the owner, expalined the situation, and asked her if she would just take the house back. She said she would have to come inspect the house, and we would have to sign a quick claim deed back to her as long as we were out of the house by the end of the month. We moved out on August 25, 2006. It all seemed so simple, until she came to do the inspection. She's claiming we trashed the house. She asked my house for $3000 in damages. To avoid a huge fiasco, he verbally agreed to $2150. We contacted our attorney to draw up the documents. She is now refusing to accept our offer. She has contacted her attorney and it is ugly. She is now wanting us to pay $40,000 for I'm not sure what. What is our recourse, if anything? At this point, we have never been late on a payment. The payment for next month is due in 2 days, and we are not sure if we should make that or not.

[Fr_Chuck]

Well that must be some contract for deed. You need to have your attorney read it, you are only liable for the exact terms in the contract for deed.

1. first on a contract for deed, you don't have a deed, so you never got one to start with and thus no need to sign any quick claim deed back to them. If they indeed signed a deed over to you, then you have bought a house and the other party is the mortgage holder.

2. The contract for deed should be specific as to what you can be found liable for.

3. I will assume you did not have or do a signed inspection of the house with photos when you moved in, So there is little proof as to what damage was done before or after you moved in.

4. So you lost your job, can't pay the payment ( that is what the owner wants to happen) they got your down payment and a years payment, now they get to sell the house over again, ** they would have really be upset if you did not lose it back. That is how people who sell homes to people with bad credit and no money make their money. They get a larger down payment than a deposit on the home, they get payments higher than rent, don't have to do any repairs to it, and then get it back when you can't pay. That is how I love to sell my houses, I have one I have taken back thee times in the past 3 years and it looks like the current person may be moving out soon, he lost his job and had their electric cut off today for non payment.

But on the other hand, you have to live somewhere, is this payment higher than rent somewhere, Are you going to get another job soon.

Next even if she wins, you don't have a job and don't have any money, what can she get? I doubt that she has any legal recourse and is just taking some bad advice,

If you did damage the home you are responsible for that damage.

[ScottGem]

This whole contract for deed thing leaves a bad taste in my mouth. I agree with Chuck, that there should be no need for a quit claim deed.

If you didn't have an inspection done, you opened yourself up for this.

As to paying the next month, you moved out, you don't owe anything more.

This contract for deed thing may be legal, but I question the ethics. As Chuck admits, owners WANT you to default. They expect it. They seem to make their money by preying on people with bad credit. So I'm not surprised the owner would try to extract more money by trumping up damages.

Let her sue you. She has to prove the damages. Thoiugh she probably has some contractors to lie for her.