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Ok, I am needing advice. My husband and I bought a house from a man
and his son in 1996. They owner-financed it, and we had a 15-year note
to them for $30,000. We have a contract and we have filed the contract
for deed and the equitable interest paper with the county, shortly
after we bought the house. The father died about 6 months after we
bought the house, so then we were just dealing with his son.
Well, about 2 years ago, the son, Mike, went missing. The bank where
he had a loan called us, and told us that there was a situation. His
monthly loan payments were more than ours, but there was no more money
in his account to pay his loan, so they wanted us to pay the amount he
was supposed to pay, and that it would just go to the principal of our
note. So, we agreed, so that we could keep the house.
So, all is going well, and then Tuesday, the man from the bank came to
the house with new loan papers, saying that the loan that Mike had
taken out(using OUR house as collateral) had matured and that they
needed $36,000 or for us to fill out an application for a new loan.
(we owner financed because we have bad credit and we still have bad
credit, so we will not be able to get a new loan, I'm sure!) They are
saying that the money we have paid for the last 7 years will NOT go
towards the new loan, it will just be counted as rent, meaning we will
have no equity. And if we cannot get this loan, we have to leave.
I would like to know what our rights are here, and was it legal for
the bank to give Mike a loan against our house after we were already
buying it?
Thanks!
Steph
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Ok, I am needing advice. My husband and I bought a house from a man
and his son in 1996. They owner-financed it, and we had a 15-year note
to them for $30,000. We have a contract and we have filed the contract
for deed and the equitable interest paper with the county, shortly
after we bought the house. The father died about 6 months after we
bought the house, so then we were just dealing with his son.
Well, about 2 years ago, the son, Mike, went missing. The bank where
he had a loan called us, and told us that there was a situation. His
monthly loan payments were more than ours, but there was no more money
in his account to pay his loan, so they wanted us to pay the amount he
was supposed to pay, and that it would just go to the principal of our
note. So, we agreed, so that we could keep the house.
So, all is going well, and then Tuesday, the man from the bank came to
the house with new loan papers, saying that the loan that Mike had
taken out(using OUR house as collateral) had matured and that they
needed $36,000 or for us to fill out an application for a new loan.
(we owner financed because we have bad credit and we still have bad
credit, so we will not be able to get a new loan, I'm sure!) They are
saying that the money we have paid for the last 7 years will NOT go
towards the new loan, it will just be counted as rent, meaning we will
have no equity. And if we cannot get this loan, we have to leave.
I would like to know what our rights are here, and was it legal for
the bank to give Mike a loan against our house after we were already
buying it?
Thanks!
Steph
This is not legal advice.
Touchy situation for sure. But I was wondering what if you made a deal with
the owner's bank whereby you would continue to deposit money into the
owner's account for the sole purpose of making the payments on the original
loan?
Or a special escrow account of some sort.
It would appear that the loan officer is trying to trick you into creating a
new loan based on the original agreement but now in your name exclusively,
not taking into account any money already paid on that loan.
If the lending bank has been taking out money for the past two years,
probably on an automatic payment thing, then it seems to me like they're
trying to get more out of you and keeping what they've taken.
Before you sign any agreement, speak to an attorney PDQ.
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