Seller going into default on property in land contract
We entered into a land contract over a piece of property, that would have us pay x$ at contract end in 4 years, plus monthly payments of course. A dew months into the agreement, seller approaches and asks if we would buy to property outright immediately. We have now come to learn that the property was heavily mortgaged (more than FMV), much more than they can afford, and that we were unaware of at the time agreement was reached. Now seller is on verge of financial collapse, yet to this point we have over $18k invested into this property in payments and improvements. We can not take on the large mortgage and it is evident that soon the seller will lose the property to foreclosure. If we had known this prior, we not have even considered this property. Are we in a position to try and get all that we have invested into this?
good afternoon tim......taking on the current owner's mortgage isn't going to solve the upside down issue with the property....if you feel you are mortgageble and want to buy the home......there is a way that it could be done......assuming a couple of things can happen.....bob mcclure- success mortgage partners, plymouth, michigan
I know this is a little late, but you should also consult a tax specialist to see if you can claim some of your loss on your taxes. I know it won't completely alleviate the loss, but it will help soften the blow. And while I'm sure you're concerned, keep in mind that you would have been paying for some sort of housing this whole time. Even a cheap rental runs $500/month, so you're not out everything.
Tim, I would direct you to a real estate attorney for these questions. But I do not think you are in a position to recover what you have invested. When you bought the house did you obtain title insurance that showed what liens were attached to the property at that time?
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