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land contract

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K

kacey615

Guest
What is the name of your state? Indiana
My friend lives in Indiana and she has signed a land contract to purchase a home. She gave the guy $1000 down and is paying $500 a month. She has been recently informed that he has a mortgage on the home. Is this legal? How is she to move from the home without breaching the contract of which states that she cannot leave the home prior to paying $30,000 on it. Sounds fishy to me. But I am not a lawyer. Is the contract even legal if he has a mortgage on it? Is she able to move from the home without having to sell it herself considering the mortgage information? If she wanted to sell it wouldn't she have to prove there is a clear title? And if she did have to sell it could she do this in a land contract situation?
 


HomeGuru

Senior Member
kacey615 said:
What is the name of your state? Indiana
My friend lives in Indiana and she has signed a land contract to purchase a home. She gave the guy $1000 down and is paying $500 a month. She has been recently informed that he has a mortgage on the home. Is this legal?

**A: yes. And why would it not be?
*********



How is she to move from the home without breaching the contract of which states that she cannot leave the home prior to paying $30,000 on it. Sounds fishy to me.

**A: why would she move?
***********

But I am not a lawyer. Is the contract even legal if he has a mortgage on it? Is she able to move from the home without having to sell it herself considering the mortgage information?

**A: you have no idea what you are talking about.
***********


If she wanted to sell it wouldn't she have to prove there is a clear title?

**A: no, all she needs to prove is that she can give clear title. A Buyer would either need to take over her position in the land contract (if the contract allows) or obtain a new mortgage and pay off the underlying mortgage and the land contract.
**********
And if she did have to sell it could she do this in a land contract situation?
**A: if the land contract terms and conditions allow an assignment of the contract. The cleanest way would be for a Buyer to get a new mortgage and clear title.
 
K

kacey615

Guest
I appreciate your answer. However, you are absolutely right, if I knew what I was talking about then I guess I wouldn't have asked you the question in the first place. Right? Sorry to have been a bother.
 

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