Financing in Lebanon>Question Details

Redyns731, Home Owner in Ohio

We have been paying the "mortage" on a home we bought with only a verbal agreement. We need the house in our name, but don't quality

Asked by Redyns731, Ohio Thu Feb 23, 2012

for a loan, help There isn't a problem with the person we are buying from, we're just afraid he could die or something.

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If you are buying on a land sales contract this should be in writing. Several local attorneys can do one for fairly inexpensive ($500) or so. A memorandum gets recorded at the county so if the owner dies, the title company is aware of the land sales contract.
0 votes Thank Flag Link Thu Feb 23, 2012
Hi Redyns731,

First, no Real Estate transaction should be verbal. It is not legally binding unless it is in writing. Contact a Real Estate Attorney for assistance.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Thu Feb 23, 2012
As others said, you didnt buy it. I assujme it has a current mortgage and you bare paying it. How? To the 'seller' who sends the regular payment to the lender? Directly? Is what you pay more than the normal market rent would be?

Assume you do work out a contract of sale, its probably not acceptable to the ncurrent lender who can then foreclose if they discover it. To be safe, YOU would want something recorded.Sometimes we used to use a 'memorandum of option' that didnt really give much info. Remember the lender may have an acceleration clause. That allows them to take the property if its sold without the loan being fully assumed according to the lenders requirements. If you are paying more than market rent at this time, you are possibly being taken to the cleaners.
0 votes Thank Flag Link Thu Mar 1, 2012
Well, you could ask the seller to deed the property to you . . .

As Shanna says, real estate agreements are not enforceable unless they're in writing, and if YOU were to die or something, your heirs would have no claim to the property.

All the best,
0 votes Thank Flag Link Thu Feb 23, 2012
I certainly hope you went through an escrow to see what else might be on the title before you started "paying" on the home you are in. You need to have everything in writing. You see....should the seller die - his will or estate may say it goes to his kids, etc. Where will you be then? Especially if they decide to sell it out right? They do not have to abide by a "verbal agreement". Please seek either an attorney or take the time between the two of you to put something in writing - something that can even be recorded!
0 votes Thank Flag Link Thu Feb 23, 2012
Sounds like you're really "renting". The best way to get to the point where you do qualify is to meet with a good local mortgage broker and draw up a plan for what you need to do to get there.

Many people have misunderstandings about how improving your financial situation is done. Don't be a victim of the "they say". Get it straight from a mortgage broker. A good mortgage broker will do it for free. If they want a fee for working with you on a plan, walk away.
0 votes Thank Flag Link Thu Feb 23, 2012
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