Home Buying in Saint Johns>Question Details

Kim P, Home Buyer in Lansing, MI

Private Mortgage w/owner-realtor: Need advise ASAP-signing tomorrow!

Asked by Kim P, Lansing, MI Wed Jul 2, 2008

Hi, I've found the perfect home, I am so in love with it and the owner is very willing to work with me on the payments/financing for two years until I get my credit repaired enough to purchase. He's a realtor and his family has now moved to Maryland. He's meeting me tomorrow to sign the paperwork for basically a lease purchase option. He's emailed me the rough drafts and I'll be signing the papers-paying the downpayment tomorrow. We're going to go to the bank & get everything notorized. My one concern (although he seems for real) is that he might be scamming me and I'll be out the money. Is there ANY way to check him/this deal out to make sure it's on the up & up. Also, how do I find out who the owner of a house is? (So I can make sure it's REALLY his) THANKS! :)
One more thing-if the paperwork is signed/notarized, do I have legal recourse if it IS a scam?

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Your research should have included the fact that a Realtor could have worked for you as a buyer's agent and it would not cost you anything, but the agent is paid out of the seller's commission. Your question, hopefully shows others why that is important.
Hope this isn’t too late, sorry I didn’t see your post until today.

0 votes Thank Flag Link Fri Jul 4, 2008
You need to get a realtor involved to work with you review the doc's and etc.
0 votes Thank Flag Link Wed Jul 2, 2008
Kim I totally agree with Pamela get an attorney. Yes, he is an agent but he is representing himself, you need someone o reprsent you.

You are basically renting the home until you can buy. A few questions? Is your option fee refundable? Is the money being held in a separate account? Make sure you get title work so you know what he owes. Is the home being bought at today's market value? What happens to your offer and down payment if the home goes down in value? We have seen some sellers rent their homes and then stop making payments. Again you need someone to look out for you.

Cindy Knight
Realty Executives e-Group
0 votes Thank Flag Link Wed Jul 2, 2008
Most of the people here are Realtors, not lawyers. My personal opinion is that you do not have any recourse after you sign.

You should have an attorney review this contract. There are many things that could happen that would not be great for you, so you need to know you are protected. For example, what would happen if he stops making the mortgage payments to the bank and lets it fall in to foreclosure? If you don't know he is the owner, you should not sign with him.

Please get professional advice from someone you hire to be your advocate and adviser in this very serious matter.
Web Reference: http://miOaklandCounty.com
0 votes Thank Flag Link Wed Jul 2, 2008
Maureen Fran…, Real Estate Pro in Birmingham, MI
Thanks Pamela, but that didn't answer any of the questions I just asked. I know I should have an attorney/realtor represent me, but I've also done my homework on everything I need to know about a land contract/lease purchase. I've been sent the rough documents for my signing tomorrow & have read everything over very carfully. I'm not a stupid person (therefore the research & questions) and would never sign anything I didn't fully agree with or understand. WHICH IS WHY I WANT TO KNOW AN ANSWER TO THE QUESTION ABOVE. Is there a way to check this person out? ie: a realtor's network I can look him up on, etc. I've already been on the register of deeds & found out he IS the owner of this home, and has been for over 18 years, and HE purchased on a land contract. I just want to know if he bolts & I don't get my keys on July 25th, which is the occupancy date, do I have any recourse? Thanks again.
0 votes Thank Flag Link Wed Jul 2, 2008
I would recommend you don't sign any paperwork unless you have an attorney review and/or an agent who is working with you for your best interest. Not all realtors are going to do the right thing. I would hate for you to sign something you were not aware of only later to find out it is too late. Good Luck!
0 votes Thank Flag Link Wed Jul 2, 2008
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