Owner Financing Problem

[kdr1023]

What is the name of your state? North Carolina

I am buying a house on a "as is" Promissary Note. The house is owner financed with a 10.25% interest rate. We are making a $700.00 a month payment. This payment is broke down as follows: (as stated on promissary note), $13.00 for dwelling insurance, $27.00 held in escrow for property taxes, (we receive no tax forms at the end of the year), and $640.00 applied to the principle and interest.
Problem 1. Totalling what is broke down for the payment only equals $680.00.
Question 1. What can I do about the other $20.00?

In this payment I pay $13.00 for dwelling insurance. My roof is falling in. He will not provide proof of insurance. This roof was replaced 1 year before I bought the house. (bought in 1996).
Problem 2. Owner will not provide proof of dwelling insurance.
Question 2. What recourse do I have on fixing this roof? (roof damage from rotting wood).
Thanks for any advice

[seniorjudge]

The house is owner financed with a 10.25% interest rate. We are making a $700.00 a month payment.

This will take you forever to pay off.

I am not sure who owns the place: you are the guy who is screwing you?

In any event, homeowners insurance does not cover depreciating roofs.

But you should by all means make sure you have homeowners insurance.

Me, I would find another place to buy.

[HomeGuru]

what a rotten deal.

[kdr1023]

North Carolina

SeniorJudge...yep your right we suspected we were getting screwed, but the house was being bought by my husband and mom in law, she died, and we got stuck with it as we had no where else to go. The owner has the deed to the house we don't get it until it's paid off in 2012. It's been paid on since 1996. I would love to take legal action on this issue, (mostly trying to find out about the $20 difference in the promissary note and the actual payment amount). Don't know how to do this being that's it's owner financed.

Homeguru....yep it's rotton alright.

[seniorjudge]

The owner has the deed to the house we don't get it until it's paid off in 2012.

And if you do not have a document clearly spelling this out that is recorded in the land deed records of the county where the land is, you may find out you have just been paying rent on a piece of property you are renting.

Time for a lawyer.

[HomeGuru]

Over time for a lawyer.

[kdr1023]

North Carolina

SeniorJudge
How very interesting. Here's another "funny" (sarcastic of course) thing stated in this note, "buyer cannot sell house without express permission of the owner". So if I want to sell it, for over and above what is owed, I have to ask the owner if I can do it right? (we have thought of doing just that). Also, the "owner" never had this house inspected prior to my mom in law buying it. We found major crack in foundation and several other things. Is this legal?

HomeGuru...yep it is, now finding one that doesn't have a $5000.00 retainer fee is the problem.

[HomeGuru]

Originally Posted by kdr1023

North Carolina

SeniorJudge
How very interesting. Here's another "funny" (sarcastic of course) thing stated in this note, "buyer cannot sell house without express permission of the owner". So if I want to sell it, for over and above what is owed, I have to ask the owner if I can do it right? (we have thought of doing just that).


**A: then you should have NOT signed the contract.
*********
Also, the "owner" never had this house inspected prior to my mom in law buying it. We found major crack in foundation and several other things. Is this legal?

**A: yes it is legal. The Buyer needed to hire an inspector, not the Seller.
********

HomeGuru...yep it is, now finding one that doesn't have a $5000.00 retainer fee is the problem.

**A: I know one that would accept a $4600 retainer.

[kdr1023]

North Carolina

SeniorJudge, thanks for all your help, I didn't sign the note, it was signed by someone who was uneducated and 70 years old (mom in law) and my husband (not that educated either). So they both got screwed and they had no idea he was taking advantage of them (i was not in the picture when this all came about). They wouldn't have known any different however I DO. I am educated and have the sixth sense to know when things are rotten in Denmark. I also know landlord/tenant laws. So when the time is write, we'll have our day in court. Thanks again!

HomeGuru, thanks for your input also!!

[HomeGuru]

good luck to you.