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Please Help! Dont Know What To Do

 
 
annstnt
 
Reply Sun 26 Jun, 2005 02:55 pm
Must be said upfront that we were stupid stupid stupid...But we have all done stupid things right?

Ok I hope you guys can help me here..And yes I will be calling a lawyer Monday I just need some direction as to what my rights are:-)

Long story short We purchased a home under Contract for deed 4 years ago..First home just married didn't know it wasn't a mortgage. Guy told us it was, we could refinance later, goes towards our credit, a bunch of bull.

Anyhow, Friday we get a notice in this guys parents name, sent to our home , that they have been forclosed on and our proerty is to be sold at public auction 22 of July.

Now we call and find out we are not on the mortgage, this is when I discover it isn't a mortgage at all..

The seller told us he has a deal with a big real estate company here to buy these houses, 5 other people got this notice, to help him out of a jam.....

Last year he sold /transfered his business to himself under a different name(all we got was a notice saing to pay at such and such from now on) and the empty lots around us were sold to the same big RE company at a public forclosure auction...This all sounds way too fishy to me to be legal.....


Now..I am wondering, since I am going to lose my home now...Can these guys make a deal for a public auction like that? Is it legal?

Where have my payments gone since they are in forclosure?

Second, Is this seller obligated to tell us that he has a mortgage on this property? We had no clue..there is nothing in the contract about it, just abunch of crap that covers his butt..not ours...But it seems to me if we agree to buy a property that he should HAVE to tell us about the other mortage right?

Any help is greatly appreciated :-)
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Type: Discussion • Score: 2 • Views: 1,414 • Replies: 8
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Debra Law
 
  1  
Reply Sun 26 Jun, 2005 03:18 pm
Your story leaves far too many questions for anyone to give you any meaningful insight. Inasmuch as you are talking to a lawyer tomorrow, make sure that you bring all your documents, correspondences, etc., related to the transaction for the attorney's review. Only a legally trained person who has reviewed all the relevant documents and knows the laws of your state can properly advise you.
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fishin
 
  1  
Reply Sun 26 Jun, 2005 03:18 pm
I doubt that the seller is required to tell you much of anything about his/her mortgage status. He is however, contractually obligated to transfer the property to you as long as you contninue/complete your terms of the contract.

Since it appears that the property is being foreclosed on and he won't be able to perfom under the terms of the contract your recourse would be to sue him for breach of contract and claim everything you've paid to him thusfar plus any costs for you having to relocate as your damages.

Your lawyer should be able to dig up the details but this probbaly isn't going to be a nice clean lawsuit. Since the notice was sent in his parent's name it may actually be them that you'd have to sue and they may not be aware of what is all going on either. Then once they start getting hit with lawsuits they'll file for bankruptcy and have the judgement (which will make you one of their creditors) dismissed.

There are a ton of things that need to be figured out here. Who signed the contract as the seller? Him or his parents? If he didn't have an interest in the property then he may be guilty of fraud for selling you something he didn't own to begin with. (He may have had Power of Atty from his parents though...). Yoikes. What a mess.
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annstnt
 
  1  
Reply Sun 26 Jun, 2005 04:38 pm
Yes I guess a laywer will have to sort it out...From my understanding he "sold" it to his parents in a company name which included him as a member also..an LLC company which I looked up online. From what I can see he has had at least 3 companies in different names and it looks as thou he has done this to file bankrupcy and them get it charged off...it is a complete and total mess...:-(
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annstnt
 
  1  
Reply Sun 26 Jun, 2005 04:41 pm
He signed the contract as seller..well actually it was stated Success Factory (which I find out is his business alone) d/b/a Affordable Hosing which is who we thought we were getting the house thru...He then took the deed and changed companies...

I don't know but some how some way this has to be illegal......
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joefromchicago
 
  1  
Reply Sun 26 Jun, 2005 05:26 pm
Something is very strange here.

If I understand you correctly, annstnt, the guy who sold you your property has had his own mortgage foreclosed by a third party, and now this third party is trying to kick you out (the other possibility is that this guy is now trying to foreclose on you -- but he can't, because, as you pointed out, you don't have a mortgage, you have a land contract).

Anyway, let's suppose the first scenario is correct. Anyone who forecloses on a piece of property takes that property subject to any land contracts. In other words, just because a bank, for instance, forecloses on a seller's property doesn't automatically mean that everyone who is buying parcels of that seller's property under land contracts is also foreclosed upon. Remember, you don't have a mortgage: you have nothing that can be foreclosed. Instead, you have a contract. If you have been keeping up with the payments, then you can't be forced from the property (unless it's a really badly drafted contract -- I obviously can't comment on the contract's wording).

If the third party forecloses on the seller's property, it would assume the land contract that you entered into with the seller. In other words, you'd be paying the third party under the contract just as you had previously paid the seller (this happens with mortgages all the time, where one lender will sell the mortgage to another lender). Nothing else would change -- indeed, any change would constitute a breach of contract, and you could sue. Ordinarily, a person can recover only monetary damages for breaches of contract, but courts consider land to be unique. A person, therefore, may get specific performance in the event that the other party breaches a land contract (ask your lawyer what this means).

Bottom line: if you have been keeping your part of the bargain, there shouldn't be any reason why you would be forced off the property. Your lawyer, however, will be able to tell you more after reviewing the relevant documents. Good luck!
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annstnt
 
  1  
Reply Sun 26 Jun, 2005 06:38 pm
Thanks Joe!

That makes me feel a bit better.

I guess I would have to go over with the lawyer about where my payments have gone since they are going default and not me even thou I paid...I also don't believe my contract was recorded. There was no witness, no lawyers, nothin..not even noterized and the bank that holds the motgage has no clue who we are. I just assumed that a motgage with me having a CFD that I should be included in there somewhere.

Do you think, soley based on the info given, that I would have a good case to at least get out of this contract if it is binding?

At first the thought of having to leave my home was unthinkable but now knowing more I think my best bet is too go elsewhere and do it the right way from the start. This is not what we signed up for. Even if this one situation works out down the road I could have to worry about it again since I have the CFD and not a motgage. The seller is obviously not a straight shooter and if nothing else not on the moral up and up.

Seems like there should be stricker laws on this if it is such a common way to sell property....

Any how..Thanks for the info!!!!!
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annstnt
 
  1  
Reply Sun 26 Jun, 2005 06:44 pm
Does anyone here think that asking for my downpayment on the home and the last payment I made is fair? I assume since they are in bankrupcy that at least my last payment wasnt used for paying the note they owed. Am I right to think that partial payments can't be made?

I'd be happy with that at this point...The other payments I can rationalize as I would have paid that in rent anyway....sad...its all so sad...

This guy is a real peice of work..he has done so many things wrong in the 4 years weve been here, mold problems, not fixing things, misleading us, flat out lying,...why didnt I wise up sooner?
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annstnt
 
  1  
Reply Sun 26 Jun, 2005 06:55 pm
Sorry Joe, I mis read that first part...

From my understanding so far..This just happened Friday..The seller is being forclosed on by a lender..ok..well the seller isn't..His parents are...who is not who we signed the contract with...lordy this will give you a headache....lol

He at some point signed this property and several other over to his parents under a different company name that still lists him as a member ( the LLC lookup site) So we know he still runs things. He's still the boss. But legally I guess he doesn't.. I also found where he personally filed bankrupcy this year.

They haven't said to us persoanlly you have to leave...yet...The public auction is the 22 of July.and it said that 10 days after that they were to be off the property, but we are on the property....but according to my seller he already knows who is buying it as a favor to him....This can't be legal....Now according to the bank that holds the mortgage now, we have no claim OR responsibility to the property at all. She point blank told me we could walk away today and nothing could be done about it.

I am confused...I just want out of here now...This guy is a creep, who I have seen wriggle around the law before (mold issue) and I feel in my gut he is doing it to us now.

Can I scream yet! lol
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