seller financing

What is the name of your state? WA

We bought our home 3 years ago with seller financing with a wrap around mortgage. Our contract stated we had 3 years to refinance in our names and cash out the seller. This was our plan until I recently lost my job. We can no longer afford the house and would not qualify to refinance it on one income. We want to sell and find something less expensive. Our question is...since we are not the legal owners (our names are not on title) can we list and sell? We have told the sellers what is going on and they say to sell the house. They are saying that we can list it but they will have to sign off on any sale. What does this mean? I am a real estate agent (although I have never encountered a situation like this) and when I talked to my broker about listing it ...she said she doesn't think the property is ours to list. She thinks the listing agreement would have to be with the sellers. She advised me to talk to a real estate attorney to be for sure. Secondly, we are wondering who will get the proceeds of the sale? We realize that they probably will since they are the legal owners but at the same time since we have been paying on the home for 3 years are we entitled to benefit from any appreciation? (The value has gone up quite a bit in the 3 years) We are not really looking to make money on the deal. We really just want to get out of the contract without any obligations given our current situation. If the end of our contracted date comes and the house hasn't sold do we have any further liability? We realize we did not fulfill our part of the contract (refinancing in 3 years) because we are unable to do so......can we just walk away or do we risk any legal ramifications from the sellers? We of course will try to work out something with them temporarily before we would just walk away if that becomes the situation. So we just would like to know what our options are and what is the best solution to our situation.

They are saying that we can list it but they will have to sign off on any sale. What does this mean?

It means you were basically renters. They are the ones that are going to have to sign off if anything happens because they are the owners.

The proceeds of the sale would go to the sellers. Why would you think you would get any? Yes you have paid into the house but as renters. Did you put any money down?

Why did you wait so long to refinance. I know this is hindsight but you should have done it before the 3 years was up.

A contract is a contract. If you dont have the financing then the contract becomes in force and they have the option to resell.

I would try to work something out with them maybe until you found another job.

Good Luck..

[HomeGuru]

Originally posted by shrcek
What is the name of your state? WA

We bought our home 3 years ago with seller financing with a wrap around mortgage. Our contract stated we had 3 years to refinance in our names and cash out the seller. This was our plan until I recently lost my job. We can no longer afford the house and would not qualify to refinance it on one income. We want to sell and find something less expensive. Our question is...since we are not the legal owners (our names are not on title) can we list and sell? We have told the sellers what is going on and they say to sell the house. They are saying that we can list it but they will have to sign off on any sale. What does this mean? I am a real estate agent (although I have never encountered a situation like this) and when I talked to my broker about listing it ...she said she doesn't think the property is ours to list. She thinks the listing agreement would have to be with the sellers. She advised me to talk to a real estate attorney to be for sure.

**A: we would need to know exactly what kind of contract you entered into with the Seller. Also was this contract recorded on title? If not, do you have a copy of the contract?
**********

Secondly, we are wondering who will get the proceeds of the sale? We realize that they probably will since they are the legal owners but at the same time since we have been paying on the home for 3 years are we entitled to benefit from any appreciation? (The value has gone up quite a bit in the 3 years) We are not really looking to make money on the deal. We really just want to get out of the contract without any obligations given our current situation. If the end of our contracted date comes and the house hasn't sold do we have any further liability? We realize we did not fulfill our part of the contract (refinancing in 3 years) because we are unable to do so......can we just walk away or do we risk any legal ramifications from the sellers? We of course will try to work out something with them temporarily before we would just walk away if that becomes the situation. So we just would like to know what our options are and what is the best solution to our situation.

**A: see above.

[HomeGuru]

Originally posted by d8ddysgirl
They are saying that we can list it but they will have to sign off on any sale. What does this mean?

It means you were basically renters. They are the ones that are going to have to sign off if anything happens because they are the owners.

The proceeds of the sale would go to the sellers. Why would you think you would get any? Yes you have paid into the house but as renters. Did you put any money down?

Why did you wait so long to refinance. I know this is hindsight but you should have done it before the 3 years was up.

A contract is a contract. If you dont have the financing then the contract becomes in force and they have the option to resell.

I would try to work something out with them maybe until you found another job.

Good Luck..

**A: I will respond later.

Thanks for your reply. I understand that it is just like we have been renting for the last 3 years and I want to get this resolved and move on so my main question still is can we list the house? or do they have to sign the listing agreement. They are telling us to take care of it and that they will just have to approve any offers. Can we do that? The real estate company seems to think we can't even enter into a listing agreement with them.

Since your not the legal owner I don't see how you can list it. They should list it and give you notice to show it and they approve any offers they get.

Our contract was a deed of trust and it was not recorded at the time because the sellers had due on sale clause in their mortgage and they were afraid that recording it would cause them to call the loan due. Yes, we have a copy of the contract.

[HomeGuru]

Originally posted by d8ddysgirl
Since your not the legal owner I don't see how you can list it. They should list it and give you notice to show it and they approve any offers they get.

**A: please refrain from responding further. It is obvious that you have no knowledge of real property law. You are confusing the writer. Instead, spend some of your time researching land sales contract, agreement of sale, agreement for sale, contract for deed, installment contract, leasehold etc**************....
There are various instances that non title owners of real property can list such property. One example is a Buyer or Vendee on an installment contract. The Buyer is not named on the deed and has no legal title of the property but has equitable ownership in the property; thus is able to sign a listing agreement as Seller/owner of the property and sell the property.

Originally posted by HomeGuru
**A: please refrain from responding further. It is obvious that you have no knowledge of real property law. You are confusing the writer. Instead, spend some of your time researching land sales contract, agreement of sale, agreement for sale, contract for deed, installment contract, leasehold etc**************....
There are various instances that non title owners of real property can list such property. One example is a Buyer or Vendee on an installment contract. The Buyer is not named on the deed and has no legal title of the property but has equitable ownership in the property; thus is able to sign a listing agreement as Seller/owner of the property and sell the property.

So would this apply to us in our situation?

[HomeGuru]

Originally Posted by shrcek

So would this apply to us in our situation?

**A: I don't know. Read my first response.