Need to know what I must do...

[rruane]

What is the name of your state? Ark.
Ok. I sold my house on a contract I keeped the morage as it was in my name and to protect my self I have insurance that is attached to the morage it gets payed when the payment gets payed. Well last mounth the house burnted down. Now the guy that bought the house from me did not get his own insurance. So is the insurance mine or is it theres? It is in my name. They give me the inpression that they wont it to use to rabuild the house. If that is so then they will not be paying off the lone. That I got the insurance for in the first place. I just dont know if I have to turn the money over to them or if I can use it to pay off the bank lone on the house that I am holding for them. Please help...

[JETX]

Originally Posted by rruane

Ok. I sold my house on a contract I keeped the morage as it was in my name and to protect my self I have insurance that is attached to the morage it gets payed when the payment gets payed. Well last mounth the house burnted down. Now the guy that bought the house from me did not get his own insurance. So is the insurance mine or is it theres? It is in my name. They give me the inpression that they wont it to use to rabuild the house. If that is so then they will not be paying off the lone. That I got the insurance for in the first place. I just dont know if I have to turn the money over to them or if I can use it to pay off the bank lone on the house that I am holding for them. Please help...

What name is shown on the policy as 'insured'???

And though that is the correct answer, it appears clear from your post (and due to the apparent confusion) that this is likely to become a complex issue. For example, even if in some very unusual situation that the 'buyer' is in fact the insured, you could very easily file a claim against him for the destruction of your 'security' (assuming your 'mortgage' includes a security interest).
Based on the above, and other issues, I strongly suggest you take your 'mortgage', insurance papers, etc. to a local attorney for review and guidance.

[rruane]

I own the house... I am the one who has the insurance on it... I told them to get insurance but they did not and I did not wont to have a lown in defalt if somthing happened to the house... So I put insurance on it just incase... I got the insurance through the bank...

[rruane]

And they are asking me to just sign the insurance check over to them... I dont think I should do that... I think I should pay off the lown... And would they still owe me for the contracted price to keep the propetry or no..???

[JETX]

Originally Posted by rruane

And they are asking me to just sign the insurance check over to them... I dont think I should do that... I think I should pay off the lown... And would they still owe me for the contracted price to keep the propetry or no..???

Don't do ANYTHING!!! Except go down ASAP and talk with a local attorney. There are several 'questions' about this deal... including the 'mortgage' itself, the insurance (you may not have the right to insure property owned by someone else), etc.

Again, go see a local attorney!!

[rruane]

Ok, perhaps my wife didn't state the particulars correctly.

#1 We live in NY, the property in question is in Arkansas. About four years ago, my wife entered into a verbal agreement to purchase her home with a gentleman from California, since she was moving to NY with myself, and I was outside of the country at the time. Local attorneys in Arkansas do not want to take a long distance case without a substantial retainer.

#2 : After making a good-faith payment to us by the gentleman in question, the verbal contract (Although the gentleman said he would forward a written agreement, he never did to our satisfaction) that we had stipulated that the gentleman would obtain his own financing within a year, and would releive us of our morgage obligations with our finantial institution. This never happened. In addition, during these past four years, there were a number of instances where he did not make timely payments on my bank-held morgage, all in violation of our agreement made 4 years ago. In essence, he had a owner-held morgage from us, whereas the property is in our names on the tax rolls, the bank finacing is in our names, and the mandated fire insurance is also in our name. About 2 years ago, the other party tried to change the fire insurance to be in their name, and the financial institution refused to allow this, (all without our knowledge). Our bank that holds our morgage informed us of their attempt to do this.

#3) Over a month ago, the building burned down to the ground due to an electrical problem. The other party did not tell us until today that this happened, and only told us now, because the insurance company refused to release the settlement claim check to them, only to us. How this situation proceeded to this point is beyond me, as the insurance company and the bank should have informed us long prior to this, even if the other party did not.

#4) The other party finally called us today to say that he was sending the settlement check to us, we were to sign it, and return it to them personally. I refuse to do that, as I want my morgage taken care of, and will send the check to the bank to pay off the property.

Now, what are our options? I don't feel that we should be forced to turn over the property to these people, (especially the settlement check), as they did not follow the letter of the verbal agreement that we had....What are our options ?

[JETX]

Originally Posted by rruane

Ok, perhaps my wife didn't state the particulars correctly.

You're correct. It wasn't clear.... and hard to understand with all the spelling
and grammar errors. Your post is much clearer.

We live in NY, the property in question is in Arkansas. About four years ago, my wife entered into a verbal agreement to purchase her home with a gentleman from California, since she was moving to NY with myself, and I was outside of the country at the time. Local attorneys in Arkansas do not want to take a long distance case without a substantial retainer.

There is no such thing as a 'verbal agreement' to purchase or sell real property. State code requires that any transfer of real estate be in writing.
18-12-104. Execution of deeds.
Deeds and instruments of writing for the conveyance of real estate shall be executed in the presence of two (2) disinterested witnesses or, in default thereof, shall be acknowledged by the grantor in the presence of two (2) such witnesses, who shall then subscribe the deed or instrument in writing for the conveyance of the real estate. When the witnesses do not subscribe the deed or instrument of writing as described in this section at the time of the execution thereof, the date of their subscribing it shall be stated with their signatures.

Now, what are our options?

Sounds to me like you are now going to have to spend the money you should have earlier.... and hire an attorney in Arkansas to PROPERLY handle this matter.

[rruane]

Think you for your time... I will do that...