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Owner Financed Deal Gone Bad

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jricci3957

Junior Member
What is the name of your state? TX

We recently agreed to purchase an acre of land (needing a septic system) with a single-wide mobile home, all to be owner-financed for appx $42,000 @ 7% interest. The owner had financed a lot across the street from this one recently and had installed a septic system there. He said he would accept us installing a septic system as the down payment on the property and we agreed. We got quotes on the system that he specified. Although he said it was $1,000 too high, he accepted a bid for $6,000 because the guy could begin immediately. The man had requested 1/2 up front to rent a tractor with a breaker. The owner was out of town and called us and asked us to pay for the rental so he could get started. To make a long story short, we asked about having the contract written up and each time his answer is that he would get us hooked up with his attorney as soon as the septic system was installed because that would determine the final price of the property.
Now, we have about $5300 invested in a property and nothing in writing as to our agreement. The septic system is not complete because the land sits on a thick solid rock layer and needs more excavation. The owner continues to dodge our calls. I went to the court house and the property is shown to be securing a lien with several other properties and the owner also has a judgment (for unpaid backhoe services of all things) that would have to be paid before he would have clear title. We have heard stories from neighbors and other passerbys that we are the 3rd people that have attempted to put a septic system there and that the owner has a history of having work done and inventing excuses for not paying. The owner was aware of the rock difficulty because the bid for the septic on lot across the street was $6,000 and the installer lost money and in fact went out of business due to his losses on that job. I think we've been scammed! Is there any legal procedure that can secure the money invested or force him to pay us back? We are stupid but desperate for an answer.
 


divgradcurl

Senior Member
jricci3957 said:
What is the name of your state? TX

We recently agreed to purchase an acre of land (needing a septic system) with a single-wide mobile home, all to be owner-financed for appx $42,000 @ 7% interest. The owner had financed a lot across the street from this one recently and had installed a septic system there. He said he would accept us installing a septic system as the down payment on the property and we agreed. We got quotes on the system that he specified. Although he said it was $1,000 too high, he accepted a bid for $6,000 because the guy could begin immediately. The man had requested 1/2 up front to rent a tractor with a breaker. The owner was out of town and called us and asked us to pay for the rental so he could get started. To make a long story short, we asked about having the contract written up and each time his answer is that he would get us hooked up with his attorney as soon as the septic system was installed because that would determine the final price of the property.
Now, we have about $5300 invested in a property and nothing in writing as to our agreement. The septic system is not complete because the land sits on a thick solid rock layer and needs more excavation. The owner continues to dodge our calls. I went to the court house and the property is shown to be securing a lien with several other properties and the owner also has a judgment (for unpaid backhoe services of all things) that would have to be paid before he would have clear title. We have heard stories from neighbors and other passerbys that we are the 3rd people that have attempted to put a septic system there and that the owner has a history of having work done and inventing excuses for not paying. The owner was aware of the rock difficulty because the bid for the septic on lot across the street was $6,000 and the installer lost money and in fact went out of business due to his losses on that job. I think we've been scammed! Is there any legal procedure that can secure the money invested or force him to pay us back? We are stupid but desperate for an answer.
This is a tough situation. Oral contracts for the sale of real property are unenforceable. Your best bet might be to sue in small claims court for the amount you've spent working on his property.
 

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