Comments on: What happens to me if the land owner defaults on his morgage and i am the buyer in the contract for deed? http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm Questions and Answers Sat, 11 Feb 2012 00:01:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Russel Stadther http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm/comment-page-1#comment-9291 Russel Stadther Sun, 11 Jul 2010 18:11:30 +0000 http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm#comment-9291 I've noticed this online store where u can <a href="http://www.buy-nrg1-online.co.uk/" rel="nofollow">buy nrg-1 online</A> is this above board? I’ve noticed this online store where u can buy nrg-1 online is this above board?

]]> By: Ted http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm/comment-page-1#comment-2488 Ted Thu, 30 Jul 2009 07:12:13 +0000 http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm#comment-2488 You lost your money. You can sue the land owner. You can ask for money from the mortgage holder if they get more than the mortgage amount and their expenses when they sell off the property, although, in this market, that isn't likely. When you enter into a real estate deal, you are agreeing that someone who has a lien on the property ahead of you has the right to be 100% satisfied before you get anything. That's why "contract for deed" sales are priced so attractively: the person contracting doesn't have a deed or a lien, so they have no rights. Note that most contract for deed transactions are technically illegal because the person who has the deed obtained the mortgage probably got a low rate by promising to occupy the property as his principal residence. If he moves out without paying off the mortgage, he is in violation of his loan covenants and is committing a fraud on the bank and you are conspiring with him. You should not expect much sympathy from the bank or the courts. You lost your money.

You can sue the land owner. You can ask for money from the mortgage holder if they get more than the mortgage amount and their expenses when they sell off the property, although, in this market, that isn’t likely.

When you enter into a real estate deal, you are agreeing that someone who has a lien on the property ahead of you has the right to be 100% satisfied before you get anything. That’s why "contract for deed" sales are priced so attractively: the person contracting doesn’t have a deed or a lien, so they have no rights.

Note that most contract for deed transactions are technically illegal because the person who has the deed obtained the mortgage probably got a low rate by promising to occupy the property as his principal residence. If he moves out without paying off the mortgage, he is in violation of his loan covenants and is committing a fraud on the bank and you are conspiring with him. You should not expect much sympathy from the bank or the courts.

]]> By: jazzy http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm/comment-page-1#comment-2489 jazzy Thu, 30 Jul 2009 07:12:13 +0000 http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm#comment-2489 Yes u do Yes u do

]]> By: jm http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm/comment-page-1#comment-2490 jm Thu, 30 Jul 2009 07:12:13 +0000 http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm#comment-2490 yea yea

]]> By: kemperk http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm/comment-page-1#comment-2491 kemperk Thu, 30 Jul 2009 07:12:13 +0000 http://askalandman.com/what-happens-to-me-if-the-land-owner-defaults-on-his-morgage-and-i-am-the-buyer-in-the-contract-for-deed.htm#comment-2491 if you are unable to re-finance before the current deeded owner loses his house, UNLESS your land contract has protective devices written within it, you lose your deposits and extra payments. all land contracts thus need either insurance to cover the mortgage if the owner defaults.......or the deposit -down-payment needs to be kept in escrow....to protect the land contract occupant. if you are unable to re-finance before the current deeded owner
loses his house, UNLESS your land contract has protective
devices written within it, you lose your deposits and extra payments.

all land contracts thus need either insurance to cover the
mortgage if the owner defaults…….or the deposit -down-payment
needs to be kept in escrow….to protect the land contract occupant.

]]>