Selling an owner carry/land contract...

[ADBunting]

Nevada

I'm 14 months into an owner carry/land contract that I paid $26k down.

I have a situation in that the his Real Estate Agent didn't record the documents. It doesn't mean that my contract doesn't exist, just that he's still listed as 'owner' due to negligence.

He has recently attempted to try to get an 'equity loan' on the property and when I refused has filed an unlawful detainer trying to evict. Yes it would only apply to tenants. The Summons was based on a few panels of skirting that was removed <to repair plumbing, but it really shouldn't be any of his business>, that I have a couple of dogs <?!>, and other absolute frivolous bs. (I won't go into the 2 pages of repairs I've had to deal with and paid for)

Unfortunately I'm dealing with a total control freak.

I proposed that he buy the property back from me late last year. That went nowhere.

Didn't make sense to me. He wants the property, I don't want to be here. Should be simple, right? Apparently no, not to him. He wants to boot us AND keep my investment (which is pretty much everything we, my 15 yo daughter and I, have at this point due to other unforseen circumstances)

In any event I feel I should be able to sell my interest in the property. He sold it without clear title, he still has an outstanding loan of $70k which he breached by not satisfying in the time alloted in my land contract. Heck, wrap around mortgages are common. Equity loans...there's got to be something.

The balance is $100k. Payments are $700 per months at 8% (no amortization timeframe was indicated which screws up the payment/interest ratio over the 2 year contract) and the property would have to be refi-d by Jan '08.

<FYI I had suffered a moderate concussion about 2 months before I entered into this transaction so I wasn't thinking as clearly as I could>

Does anyone have any ideas or links to RE law in NV to point me in the direction to be able to transfer this or have any insight no matter how weird it might sound.

Thanks for your help.

Sue

 

[lcannister]

General comments because I can not see your EXACT kind of contract that you signed.

Is this a land contract? If so in some areas the person still owns the property and can indeed get a second or even third mortgage/loan WITHOUT asking or even telling the potential buyer.

Wrap mortgages can be grounds for the Lender calling the entire balance of his mortgage and unless done with the consent of the mortgage holder can be considered fraud.

Depending on the exact type of contract you have

He has recently attempted to try to get an 'equity loan' on the property and when I refused has filed an unlawful detainer trying to evict. Yes it would only apply to tenants

you may well be a tenant.

So help us help you what is the exact terminology used in your documentation?

 

[ADBunting]

No, it's specifically a purchase contract.

There is NO WAY I would pay 26k down for a tenancy, lease op or a rental.

It's disturbing. All he really wants is to money grub my down and be able to re-sell the property when the Real Estate Market is picking up here.

I think it's possible it's remorse at not selling outright (which he would probably have had difficulty doing when the market dropped out right after I purchased it even though I found out later he paid almost 30k less than his asking price). I have paid reliably every month.

There is something else underhanded going on.

Susan

 

[lcannister]

Well you certainly changed your original post, get an Atty.

He sold it without clear title, he still has an outstanding loan of $70k which he breached by not satisfying in the time alloted in my land contract. Heck, wrap around mortgages are common. Equity loans...there's got to be something.

No YOU bought it without clear title and that means the original mortgage holder can call the balance at anytime it finds out about this "wrap".

You keep saying land contract and then you say

There is NO WAY I would pay 26k down for a tenancy, lease op or a rental.

IF you have a LAND CONTRACT it may not be, as in your case, recorded , making the legal options of the buyer shaky should the agreement be missing something in some way.

Example, if your seller still owes a mortgage on the property (as yours does), then you assume that the seller will use his monthly payments to pay the mortgage as well as any taxes or other liens, keeping the title clean. If this happens, then you own the property free and clear at the end of the contract. If he/she does not keep up with payments owed, there could be trouble for the buyer.

While a land contract can seem very attractive to a buyer that is unable to secure a conventional loan, there are pitfalls to such an arrangement. Many sellers don't file or record the proper papers, in some cases because their lender would not agree to the agreement or land contract. The lender may have stipulated that the borrower must have possession of the property. Hiding this by refusing to file the land contract can cause problems if the lender becomes aware of the situation.

The lender can demand payment in full of the loan, forcing you to get a loan to pay off the mortgage if you don't want to give up the property. If you can't come up with the money, you'll lose everything you have invested in the property and be forced to move out. This can be especially painful if you have also spent money and energy improving the property, as you have.

There can be back taxes or other liens that your seller owes, which could cause you to lose the property or force you to come up with extra money.

When one decides to take part in a land contract, make sure the title to the property is clear. Make sure the seller intends to file the proper papers to insure that you have some protection.

A land contract can be beneficial to buyer and seller alike as long as everything is above board, if not then you have your current problems.

 

[nextwife]

You know, buying on Land Contract is a totally valid way to buy. However, you failed to accomplish all sorts of important steps in the process.

It is SUPPOSED to be done properly: you get an owner's Policy on your Vendee's interest, have the instruments which create the interest properly recorded, and have all prior liens cleared at closing. Sounds like you did NOT close through a title company or closing agent and never had the title searched prior to entering into the LC.