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Old 03-26-2015, 06:45 PM
 
2 posts, read 2,816 times
Reputation: 10

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We recently signed an owner finance agreement with $3,000 down and the title, insurance and taxes are all still in the other ladies name with us paying all. We have only been there around 1-2 months now but have found a lot of problems we weren't aware of but the contract said as is. also the home insurance just sent us a lettter with a list of things needing fixed within one week or else they were dropping the coverage. One thing was the roof needed patched. We got an extra week extension to fix the list but today we got another call from the insurance company saying the extension was denied by the higher ups and the roof needed replaced!! Apparently when the lady called to get the policy, they asked the condition of the roof and she said it was perfectly fine but they have pictures of the roof and are saying she basically lied about the condition and it needs replaced. By tomorrow!! They said they would call her and they think she isn't doing us right about it. We called her about it today and she was supposed to call them and get back with us but we haven't heard back. We've only been there less than 6 weeks and we want to just walk away from this whole deal and cut our losses with the down payment and just give her the house back and take us off the whole agreement since nothing is in our name except for that. What rights do we have in this situation?? Does she owe our money back? And can we just walk away from this? Especially since she is the reason insurance is being dropped. And the agreement states we have to keep the insurance policy that she gets.
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Old 03-26-2015, 06:47 PM
 
Location: Austin
7,077 posts, read 16,889,211 times
Reputation: 9484
Lawyer up...
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Old 03-26-2015, 07:53 PM
 
1,049 posts, read 2,398,254 times
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You made horrible decisions, nobody forced you to. Rethink your life. Oh and get a lawyer.
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Old 03-26-2015, 08:40 PM
 
2 posts, read 2,816 times
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Who do you think a lawyer would side with? We had a free consultation over the phone with a lawyer today about some of the minor basic details and he said the lady could just sign releasing us from the property if she wanted to. So we arr hoping she would do that especially since she'd be getting her house back along with any money weve paid her.
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Old 03-26-2015, 08:44 PM
 
16,486 posts, read 17,513,441 times
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So tell her you plant out of the deal. She misrepresented the property. Even as is isn't as is. You may need a lawyer to write a letter of intent
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Old 03-26-2015, 09:06 PM
 
Location: Sugarmill Woods , FL
6,235 posts, read 5,386,899 times
Reputation: 13586
Home inspector would have been a good idea BEFORE you bought something that has defects you didn't determine on your own. Now the lawyer route is your only recourse.
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Old 03-27-2015, 03:50 AM
 
4,480 posts, read 7,937,629 times
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Quote:
Originally Posted by sunflower79 View Post
What rights do we have in this situation??
Basically none. You agreed that everything stay in her name and you pay for it. Nothing illegal about you signing dumb contracts.

Quote:
Originally Posted by sunflower79 View Post
Does she owe our money back?
No.

Quote:
Originally Posted by sunflower79 View Post
And can we just walk away from this?
If she lets you. Worst case scenario she sues you.

Quote:
Originally Posted by sunflower79 View Post
Especially since she is the reason insurance is being dropped. And the agreement states we have to keep the insurance policy that she gets.
She basically took advantage of you because you dont know what your doing. Very clever.

You basically did everything wrong.... so sorry to say..... Sometimes this is how we learn in life. Dont feel too bad. We all make mistakes.

As a quick fix, I would ask the woman to change insurance companies if the roof isnt that bad. Might just be an insurance agent being picky. That will buy you some time. Next I would re-negotiate the deal so the house is titled in my name with her being the bank.... or offer to buy the house with a traditional mortgage from a bank.

Last edited by 399083453; 03-27-2015 at 04:20 AM..
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Old 03-27-2015, 06:54 AM
 
16,486 posts, read 17,513,441 times
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Technically you can walk because iit would get treated as a foreclosure. I think she would simply go away with the money. She is basically the bank.
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Old 03-27-2015, 12:31 PM
 
6,359 posts, read 7,324,210 times
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One of the biggest problems with owner-financed real estate purchases is that Buyers oftentimes do not do their full due diligence. You fall into that boat. There is no reason to contract to buy a house without knowing more about it. However, the roof may or may not need immediate replacement--that could just be an overly cautious insurance company. (If it's not leaking, I would say "no", although it may need to be done soon.)

In any case, if you want out of the contract, just talk with the Seller and see if they'll give you at least some of your down payment back. Don't count on it, but it doesn't hurt to ask. Sure, you could try to sue to get your money back based upon some technicality that might be available, but you'd probably have an uphill battle (and a potentially costly one). At worst, you could offer to sign a Quit Claim Deed back to her relinquishing your interest in the property...and simply walk away. It would be highly unlikely that they would go after you for the balance of the contract--although they legally may be able to do so. She'd probably be happy to take the house back so that she could sell it to another sucker...er, Buyer.

Live and learn.


EDIT: Have an experienced real estate attorney thoroughly review your contract so that they can lay out your options. It sounds as if you bought on a Land Contract...or perhaps some convoluted rent-to-own.

Last edited by jackmichigan; 03-27-2015 at 12:49 PM..
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Old 03-27-2015, 12:32 PM
 
Location: New York
2,251 posts, read 4,161,023 times
Reputation: 1607
.


I do not like this deal, to me sounds predatory!

OP does a good of explaining the situation, it appears the owner is playing a smart game, There are two sides to each coin, though I am siding with OP. The property owner knowing there are extensive repairs, instead sells/rents out a property, requiring new occupants to fix and pay for the repairs. $3000 – one month deposit? If this is also the payment, sounds very high for new homeowners.

What rights do you have in this situation?

The owner finance agreement stating "As Is", by agreeing means you are responsible for the conditions and terms laid out in the agreement.

Does she owe money back?

No because you agreed to the "As Is" terms.

However if you can get dated proof from the insurance company the repairs were required. Then being able to prove she lied to you, technically you can sue her in civil court for up to $5000. You can do this yourself, do not need an attorney. This takes a long time (months), requires sending a restitution (demand) letter first.

Just walk away from this?
  • If OP's names are not on property documents < what exactly is being financed?
  • If the title, insurance and taxes were in your name and she held a lien against the property. Considered secured debt - if you stopped being the mortgage, she has the right to foreclose under you states foreclosure rules if you stopped making payments. Or increasing the payment if the insurance and taxes are not paid (called force-placed)
  • Being that title, insurance and taxes are in another person's name. It sounds as some type of rental or lease agreement, requiring you fix and maintain the property. Because OP's name is not on the property documents, any legal action will be done in civil court.
  • If you walked they have to option to come after you in civil court because you didn't comply and broke the terms of the agreement.
  • My opinion since OP's names are not on any of the property documents. The longer the OP is there, will only further exacerbate the situation.
A suggestion could be to sending a notarized letter stating due to the information from the insurance company. The cost of repairing the home "AS IS", was more than what was discussed prior to moving into the property. We are officially breaking our agreement. If she did take you to court, showing this letter before a judge could be more favorable.

Good luck....

Last edited by Modification Specialist; 03-27-2015 at 12:45 PM..
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