All Forum Posts by: Jerrry Hopkins

Thank you for your responces Bill and Jay. It does sound like I'm screwed the best I could hope for is to payoff my loan which will be 18 months . The seller will still have to make payments on his loan I don't think he can file bankruptsy on this. I guess he could foreclose but I should be able to sell the house as long as I payoff his note in the sale which might be around 65,000 by then. I should be able to sell it for around 120,000 by then so could walk away with 55,000 which is better then nothing?

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Originally posted by @Bill Gulley:

Not sure what fubared is Jay, but the is no legal path to cure this without an attorney. H/she may take it to the DA, suit to the closing agent, then to the title company if it was an insured closing and to the seller. If there was collusion or errors or omissions or fraud it will take an attorney seek a remedy, the buyer can't do it alone. Heads could roll.

Yes, Sub-To can be dangerous when improperly originated, documented, closed, serviced and collected not to mention the underlying mortgage risks, I've pointed those aspects out many times. When done properly they can be very useful too, that is, when done properly! :)

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Originally posted by @Christopher H.:

Jerry, does the Seller know that you are planning to sell the property or otherwise pay off the loan? With the help of an attorney, I would let them know that you intend to pay the balance of $18,000 and will need clear title. If they cannot perform you may be in a tough situation. The flip side is they may have $52k+ in an investment account earning a much higher return that the interest rate the bank was charging. If that's the case then simply communicating your intent may resolve the issue.

Yes he does know, And was very panicked gave me some excuse that he went thru a divorce and the x wife got one of there investment houses that he was going to use to pay any outstanding balances. So my guess is he financed the house 3 yrs earlier on a 30 yr note and is paying the minimum with my money and pocketing the rest. That is the only way he could be so over what I owe him.

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Thank you Aaron and George

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Yes you are correct the issue is with the seller. Originally I thought since this wrap was not on the title ins,policy they were responsible. I am worried the seller defaults on the primary

loan and then I'm screwed

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The house was in escrow for a sale price of 110,000 . when this all unraveled . So I can't sell the house.

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Thank you for your support, I originally purchased the home for 77,000 in 2011 put 19,000 down. So the owner financed 55,000 . Found out it was done in a wrap , and the seller still owes around 70,000. He originally bought it in 2008 for 88,000.

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Hi,

Four years ago I bought a house that I got thru owner financing . I thought it was a good investment , until i recently tried to sell it this month. Found out that It was a wrap and unfortunatly I was not wise to them. I filed a claim against the Title Ins policy but was denied. When the transaction took place I had signed warranty deed that had a Wrap addendum. So the issue is I owe 18,000 on the house had it sold for 110,000 however the seller still owes 70,000 on this original mortgage. I dont know if I can sue for damages?

Has anyone gone thru this?

Thank you

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All Forum Posts by: Jerrry Hopkins

Jerrry Hopkins has started 1 posts and replied 8 times.

Post: owner financing gone bad.

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