Offered Land Contract....there are a few issues though...

Offered Land Contract....there are a few issues though...

Leesburg IN · Member since 2015 · 15 posts · 1 vote

A close family friend has been in the real estate industry for many years. He is now ready to get out of business.  He has 3 houses that he is willing to sell to me on land contract, no down payment, and no interest.  Here are the problems though......

1.)  One house is rented and he says the lady refuses to let him in. She has rented the house the last 14 years, pays faithfully, but she refused to let him in the last 5 years. (Im not sure if she is hiding something, or she feels uncomfortable with him being in her house since she is a single woman). 

2.)  He has 2 houses that he was selling on a VERBAL land contract. Both houses have missed payments. One has missed a few payments here and there in the last 5 years.  The other bought the property for 49k five year ago, is down to 13k owed and now refuses to pay any more payments. They want to renegotiate the contract that they had with the landlord. They have not paid for Nov or December. The owner(not the ppl with the land contract) of the house did not want to renegotiate and so they began to verbally disrespect him.  Im worried what will happen if I buy this house. They will be mad to know that they were buying the house and now its been sold to someone else from underneath them. I talked to the real estate lawyer my family friend is using. He says that since there was no land contract written and signed that the origional owner has the right to sell it.  This situation is in Indiana.  Anyone have any opinions? Also, any suggestions for me if I decide to buy the 3 houses on land contract?

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  • Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
    9y

    These situations are likely to end up in court. That doesn't mean they do not present opportunities--they may. However, you need to explore the possible outcomes and the expense and time which may be required to resolve them in detail with an attorney who represents you, not the seller. Find a local real estate attorney who is well versed in contracts, evictions, foreclosures, etc. and schedule a meeting. This will cost some money but that is likely to be less expensive than taking on obligations without understanding them. Explore the worst case scenarios and the likely scenarios and make an educated decision on how or if you wish to proceed.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    To add to What Jeff mentioned which is all prudent of course.

    I think if this opp came my way the very first thing I would do is open and escrow and pull a full title report.. 

    sounds like a lot of moving pieces and you want to know who actually owns these .. is there really a recorded contract of sale  ( IE Land contract).. etc etc.

    once you know the state of your title then you can work through it.

    Best of luck sounds like a great one... the harder you work on these the luckier you will get.

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