U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Michigan
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 03-18-2009, 08:10 AM
 
1 posts, read 15,931 times
Reputation: 16

Advertisements

I purchased a home on land contract in 2007 with the agreed upon terms of securing a conventional mortgage in 2010. I can clearly see that I will be unable to secure a conventional mortgage. I would like to leave the home this Summer. I have indicated to the primary homeowner that I don't forsee being able to secure a loan, especially now that the lenders criteria may be even stricter. I'm wondering if I am contractually obligated to stay til the term date of said agreement or can I terminate contract sooner?
Reply With Quote Quick reply to this message

 
Old 03-18-2009, 08:14 AM
 
Location: West Michigan
12,134 posts, read 22,273,218 times
Reputation: 16222
Seek professional guidance, not internet forum guidance, to be sure in your situation. I would THINK it would be the same as a regular loan/mortgage you cannot complete, but that is just a guess
Reply With Quote Quick reply to this message
 
Old 03-20-2009, 01:39 PM
 
168 posts, read 598,098 times
Reputation: 83
Your description of the contract seems rather vague.
Are there any other stipulations in the contract? If it is 100% written that you WILL get a mortgage by 2010 as a means to fully satisfy the contract, then there seems as if there is no condition. Meaning you owe for the contract regardless of whether you can or cant get one. You "purchased" the home. You arent "going to purchase" it in 2010. You already did. Whats in question here is how are you going to pay for it? Via a conventional mortgage secured by 2010? OR some other way?

This will all come down to the language in the contract as to how much (if any) wiggle room you may have. Get a lawyer asap.
Reply With Quote Quick reply to this message
 
Old 03-21-2009, 12:42 PM
Status: "your tomorrow's not the same" (set 8 days ago)
 
Location: Cape Coral FL
2,795 posts, read 3,502,829 times
Reputation: 1201
Agree, that you need to get an attorney to advise you ASAP. However, if there is nothing written to the contrary, and the numbers can be worked to everyone's satisfaction, you might be able to find somebody willing to "assume" your land contract. You may find it possible to at least get yourself out of the hot water, and possibly even with a couple bucks in your pocket.
Reply With Quote Quick reply to this message
 
Old 03-22-2009, 09:01 AM
 
Location: Aiken, SC
362 posts, read 951,310 times
Reputation: 136
Also, you may be able to talk to the homeowner and continue with the land contract payments to him/her. You can explain to the homeowner that it would be to their advantage for several reasons: they get a monthly income, they get to collect the interest, the home would not be vacant, they would not have to go thru the process of trying to re-sell the home, etc.

It would be a win/win for the homeowner to work out a deal with you. It's not like dealing with a bank/mortgage company where they stand by "it's our policy" bull crap.
Reply With Quote Quick reply to this message
 
Old 04-03-2010, 04:28 PM
 
1 posts, read 14,203 times
Reputation: 12
my folks are buying land from someone in oregon and they are needing to get out of the purchase what do they have to do to get out of it?
Reply With Quote Quick reply to this message
 
Old 04-03-2010, 04:39 PM
 
Location: Michigan
1,203 posts, read 1,887,263 times
Reputation: 501
My sister in law sold one of her homes on a land contract. It's my understanding that land contracts always are written in favor of the seller of the home or land. I'd talk to the owner first and try to work something out. In the case of my sister in law her contract stated if the buyer failed to purchase the home in a set period of time she gets the house back and the buyer..... well they are out all the money they just paid her for the time agreed on. If I were selling on a land contract for 3 years and the buyer backed out I'd take it back, raise the price and sell it again. Think about it, most likely you paid their mortgage on it for 3 years and walking away will have nothing to show for it. Why wouldn't they let you out of it?
Reply With Quote Quick reply to this message
 
Old 04-03-2010, 05:33 PM
 
Location: Huntington Woods, MI
1,742 posts, read 2,184,158 times
Reputation: 683
Can you not refinance your home because it is worth less than what it is owed, or you have bad credit? If it is because it dropped in value, ask the land contract holder if he would accept a lower buyout. In this market I'm sure he will agree to a lower buyout.
Reply With Quote Quick reply to this message
 
Old 04-05-2010, 01:18 AM
 
Location: The Middle
5,262 posts, read 8,247,028 times
Reputation: 6709
Land contracts like a previous poster had stated are more for the seller. In fact when I was trying to sell a house I had a real estate agent suggest I do the land contract route because its such a sweet deal. Basically the buyer is the one to lose out because they paid into it and get nothing in return. Even if you had great credit, I am sure the amount you agreed on is no longer possible since real estate has taken a dump in most places.

I know two people that did land contracts and both got out. The first agreed to make a large balloon payment in 2 yrs. When the time came, he did not have the money. He had to move out. He basically paid rent for two years but over paid. The other person did a rent to own deal and put down 5 grand. The seller would not adjust the price and the home had gone down in value. So much so that no mortgage company would approve the loan because the house would not appraise. The seller refused to lower the price knowing full well he had the control.

All in all, I would have a real estate attorney look over your contract to find out what your rights are.
Reply With Quote Quick reply to this message
 
Old 04-09-2010, 09:37 AM
 
Location: northern mi
37 posts, read 103,340 times
Reputation: 28
Quote:
Originally Posted by fallingwater View Post
Land contracts like a previous poster had stated are more for the seller. In fact when I was trying to sell a house I had a real estate agent suggest I do the land contract route because its such a sweet deal. Basically the buyer is the one to lose out because they paid into it and get nothing in return. Even if you had great credit, I am sure the amount you agreed on is no longer possible since real estate has taken a dump in most places.

I know two people that did land contracts and both got out. The first agreed to make a large balloon payment in 2 yrs. When the time came, he did not have the money. He had to move out. He basically paid rent for two years but over paid. The other person did a rent to own deal and put down 5 grand. The seller would not adjust the price and the home had gone down in value. So much so that no mortgage company would approve the loan because the house would not appraise. The seller refused to lower the price knowing full well he had the control.

All in all, I would have a real estate attorney look over your contract to find out what your rights are.
I have sold on a land contract several times and when the buyer is unable to pay the property returns to me. However there is some court cost in clearing up the deed if the buyer skips out in the middle of the night. Unless you have something written in that contract that states otherwise, you shouldn't have any major problems (no I am not a lawyer) Get ahold of the person holding the land contract and tell them you are having problems and ask about just signing it back to them.

trapper1
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2011 data
Loading data...

123
Hide US histogram


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Michigan
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top