I Think I've Lost My House
 

I began buying a house on contract back in the fall of 2005. In the summer of 2006, things went sideways on me and I missed some payments. The people I was buying the house from went crazy, paniced and got a court order to enter the house, where they took just about every tool and electrical device I owned. My utilities were shut off and I moved in with a friend, making $600 a month payments to these people and leaving the utilities off. The city raised taxes and soon, I'll be paying an extra $100 per month in property taxes.

I live in an economically depressed area. Everybody has been scrapping metal for some time, making it harder on us all. Plus, jobs are leaving. Good lucking finding anything that pays more than $8.00 and hour. I'm working at a gas station and I make only around $7.50 and I now, I get less than 40 hours per week. I do odd jobs when I can find them. When I bought the house, I was making decent money but this has been the Death of a Thousand Cuts. This town is so full of vacant rental buildings that you can get a whole house with a garage for $450 a month now. It's coming up on a year that I haven't living in this house yet I've been making payments. I had hoped to pull out of this nose-dive for some time but certain plans never came to fruition and a few other deals went sideways on me.

I've been stuborn about this but as time passed, the stress has been getting to me and I'm not doing well. So, I'm pondering a tactical retreat.

Anybody got experience in this or advice? I'd rather learn from your mistakes if I could.

I'm confused??? is the $600 a month you are paying now for the 'missed' payments? why are you paying property taxes for a house you no longer own?

Sorry to be so dumb here............I just don't understand. :shrug:

The one piece of advice I can give you already have learned. Never buy a home by contract only. There are too many ways for something to go wrong. It works out sometimes but other times you can loose everything.

I'm selling a house on land contract. Our buyers have defaulted more than once and written bad checks a couple of times. Since they had already put so much money into the purchase, I bent over backward to help them. HOWEVER, I no longer accept checks; if payments are 5 minutes late, I add on severe service charges; if any utilities aren't paid, I pay them and charge extra for doing so; AND I shortened the term from 10 years to 5. They haven't defaulted since. See if the sellers will work something out, but be prepared for their wrath.

Ruth

I don't understand how they can take the stuff inside the house. That was your property beyond the real estate that had nothing to do with it. Did you actually sign a contract stating that they could do that if you defaulted?

You need a lawyer, my friend. And fast.

.................Let the house go back . Use the monthly payment to purchase a travel trailer than can become a decent home and can be moved too a different town , If need be!!! Besides , travel trailers aren't taxed as a home IS , If you leave the tires on them and they have current license plates . Use some of your income replacing the Tools that these "nice folks" Stole from your home . You're just Pi__ing in the wind trying too play catchUP by making payments on THEIR home . Sorry , to be so Blunt but it's time to move on , based upon your description of your situation . I hope everything works out for you . , fordy... :shrug:

I hate to say it, but I think you would be better off to cut your losses. Consider selling it, as long as you can get enough to pay it off. When you sit down to collect money from the buyers, a check will be written to the original sellers. If you can get more than they owe you, that's money in your pocket. But get out from under this.

How much do you have in the house, as a down payment?

How much do you owe on the house? Interest rate? Length of contract? What are the terms in your contract about defaulting and missed payments?

I am not a lawyer, but removing your personal belongings sounds illegal to me.

I think having the above information would be of great importance before I offer an opinion.
Clove

Maybe Karma is telling you it's time to leave?

Do you have strong emotional ties to the place, family, friends? If you're dying the death of a thousand cuts, maybe it's time to get away from whatever's cutting...

You might just consider cutting your losses, think of your monthly payments as rent you would've paid. Unless you've got a surplus of money available, to cover your mortgage payments, you might get back in good with your sellers, and have another mishap and be in the same boat.

Good luck...

btw... Texas is booming...

We moved when the economy went sour.

Actually, we COULD have commuted to Omaha, a bad economy hits harder in some areas than others. Have you put in your application in other towns?

Have you considedred a room mate? Others are in a similar bind, and if they paid half the going rate for an apartment, it would pay the utilities for you both.

I am going to assume the taking of the tools was to satisfy monies owed, and that they gave you credit for them, yes?

Unemployment happens. Been there, done that. Is there a college in your area? It might be a place to look for a room mate.

The riping off the tools sounds crooked. I too live in a VERY Crooked county in IL once these sort of folks start in with you and they have the powers that be on thier side you are in for it. Id get out of this hades hole they call Il!

i just looked at a map you are less than an hour from me,near or in freeport i would assume, it is time to cross the line man come to wis and leave the hell hole to the south look at janesville or madison
the cost of living is a bit higher but the job outlook is much better there is a lot of construction going on in madison but anyone who wants to work hard and has a fairly clean record should be able to find work in the mad city (madison).

as for the travel trailer has anyone ever slept in a travle trailer at 20 below zero
i don't think it would be a good idea for out climate.

i admit i drive 40 minutes to madison for work

So sorry to hear your problem.

Many atty's will do the first visit as a consultation & do it for free or just a nominal sum. Cover your bases first, write everything down: when they broke in, cost of tools, what you owe, take the contract. Get things in order & do not waste time. Or Call the county atty's office. They know the law.

See if it is illegal steal your tools for non-payment. Does your contract say they can do this?? I think not. Entering the house, even with a court order, to see it's condition to protect their property is different from using that for stealing.

Push back. You do have rights. At least you'll need your tools for work??

I bet you didn't use a realtor or an atty. Land (& house) contracts are illegal in AZ.

As many have said, assess your costs & losses, see if everything is worth figiting for - maybe it's time to move on.

I too, have a hard time letting go, but have found that in the long run I was better off for it. Good luck

I agree that you probably need to see a lawyer. I doubt that you'll end up with the house in the end. Most contracts for purchase have a clause that the seller can repo at any time in the future if you were late on a payment. It sounds like they are setting back sucking up the payments as long as they can. I hope things work out for you, but it sounds like your just making payments for the legal owner.

Oh, and most contracts also have a clause that any money paid will be treated as rent in case of default and repo. The chance of you recouping any of your money is probably nill, unless you can sell the house for enough to pay it off and get your investment back. Good luck.

Some states have legal aid available or credit counciling services that might help put things in perspective.

Taking your personal belongings sounds illegal to me but that may be a state difference.

There are 49 other states in the US unless you are tied to that one for some reason.

I agree with Ruth if you want to stay where you are, talk to the owners and see what can be worked out. If it is time for a fresh start, let the current owners know you are moving on and do it. Only you can determine if you need a fresh start. Make a list pros on one side cons on the other. It may take extra courage to do what the list is telling you...instead of doing what your heart wants.

Melissa in NE

The landlord/seller had no legal right to take any personal item that belongs to you. You should have called the police immediately when this happened. You have the right to get that stuff back if he still has it. I'd go to the sherrif right now and tell him what happened. Also, if the utilities were shut off because you were behind on paying your electric bills that is one thing, but if the landlord/seller did it, again he can get in big trouble. He is not allowed to turn off your utilities on you.

Read the contract that you signed when you got into the deal with the guy. It will have all the information in it about what his rights and obligations are to you and what your rights and obligations are to him. If he has not given you a CERTIFIED NOTICE LETTER telling you that you have to pay up or get kicked out, then you have every right to be living in the house you are paying for. There are LEGAL PROCEDURES that he must abide by if he wishes to evict you based on the land contract agreement.

Unless you want to pay on this house for the rest of your life and NEVER LIVE IN IT, I suggest you contact an attorney right away. Yes, they are expensive, and you don't make much money, but you are basically THROWING AWAY the money you are paying on the house. Unless he has formally evicted you and the land contract has gone into default you have the right to still be living there. CALL A LAWYER.

donsgal

Are we talking about owner will carry contracts? Because they aren't illegal in Arizona. We bought land that way in Coconino County with no problems and used a realtor.
If you do a quick search there is plenty of real estate for sale that way on the web in AZ and a lot is advertised by realtors.

Actually in a decent climate travel trailers are a great idea. I lived in one for 17 years winter and summer. I added insulation and panelling over the walls and covered the windows with styrofoam insulation and duct tape in the winter, used window fans in the summer. Its a good way to temporarily live really cheap and if you don't like where you're living you just move!

Land contracts contracts for deed whatever you call them
 

Its a type of owner financing, We have both bought and sold using this method. Terrabus said she missed several payments during the first year of the contract. Terra also said the people got a court order to enter the house, Did the owner have the right to remove personal belongings, must have or there would have been police involved.
Now Terra has not been living in the house, not sure when moved out but seems before the court order. If you don't make the payments you have voided the contract. Same as the bank or anyother finance type company. Sorry but yes you have probably lost the house. Getting the court order to enter the house says the house was vacant and they did it correctly. If you can catch up the payments and get utilitys on and move back in they may work with you if not get on with your life. You tried, your job went bad and you lost, sorry it happens but its not the property owners fault. Just my opinion. As I always explain to people we have sold to by land contract we are just being the bank, we do not fix things, and need the money as set out in the contract. Only one did not do it and after several start overs and things just getting worse we agreed to take it back and they moved.

Lisa:
Land contract: an agreement to sell & purchase whereby legal title is withheld from the buyer until such time as the required payments to the seller have been completed. This means that the seller can dictate what can/cannot be done with the property & all improvements are his. Hence this thread.

Owner caryback: seller is willing to take back a purchase money Mortgage or Note & Deed of Trust.

In AZ owner carrybacks for purchase of real estate are structured like a Note & Deed of Trust, (usually used these days as it is easier to forclose on them as opposed to a mortgage). You, as the buyer, receive a warranty deed on the property. This means you have all rights within the deed restrictions, to do whatever you wish with the property, and all improvements are yours.

About 30/40 years ago AZ went through major land fraud schemes. All real estate contracts, sales methods, etc were examined and I think that's when land contracts becme illegal.

This is probably what your realtor did - it's in the structuring. And if it was through a title company, I'm sure it was done that way.

As usual, I'm too verbose - hope it helped. :)

Typical contracts like this, the seller owns the house until the last payment is made. Seller is liabel for the utility bill, tax bill, any contractor leans placed on the property, etc. until the end of the contract!

As such, Terra never owned the house.

The original owners have a lot of exposure if things go bad, & the new buyer misses payments, property gets wrecked, etc.

I too would 'go crazy' if several payments were missed so very early in the contract. It would be a bleak outlook on ever getting the property sold to the new buyer. As well, there are _many_ horror stories of new buyers missing payments, running up utility bills, trashing the place, & skipping out. The original owner is left with utility bills in excess of th few payments recieved, and a property that is now worth much leass than it was.

Terra might not fit that mold _at all_ but it is something that happens all the time...... I would be deeply concerned as well if I were the seller. She didn't meet the contract terms - whatever the reasons.

Where to go from here? It sounds like Terra was evicted already & contract terminated??? I'm not sure why she has continued the payments......

There are 'either or' things here. If you've been evicted, there is no point in continuing the payments. If you have caught up the payments & are continuing to move forward with purchasing the house, then you should be in it & you should have the utilites back on.

You should not have _both_ situations.

You need a sit-down with a local legal advisor (free or low-cost can be found), & with the sellers. Something is not right here. Either stop the payments & go back on your contract; or make good on your contract & retain control (NOT ownership, but control....) of the house.

You seem somewhere in the middle, and that is _not_ right. You make payments, but have no control....

Those advising you here have good advise for some situations, but your state & your exact contract will dictate exactly what has happened. You _must_ sort out what has happened, and go ahead from there as you can. Either continue the contract if the sellers allow - or break it & stop all payments.

We don't have enough info to really help you figure this all out. But you do need to figure out what is going on. Things are not right as they are now.

--->Paul

Sorry to hear of your difficult situation, but you need to stop allowing your actions (throwing $600/month that you cannot afford, at a house you don't own, or occupy) and the actions of the home's owner (turning utilities off, evicting you, and stealing your personal possesions) from destroying your future. You need a legal aid lawyer to help you protect your rights, and you need one IMMEDIATELY! If a landlord/ contract holder behaved this way in our state, they would be lucky to avoid jail. Start fighting back now. Good luck.

Yes, sorta, not fun at all!
It's was only 10 below and had a furnace that never shut off, (LP like crazy), kept the water jugs inside or they would freeze. Ice on the windows and nail heads, as the were in the panaling.
Temps were 50ish (sorta).

Depends on the kind of contract you entered into. If you went into default by missing payments, that's on you. If you are still making $600 a month payments, why aren't you living there?

If you didn't put anything down on the house, and it's a typical land contract, you really don't have anything to lose by just walking away. This is why most sellers demand high down payments....

I got behind on the utilities and there were some other issues that came up. The contract stated that I was to get financing after 18 months.
I'm getting my stuff back this week. I told them I'm coming to get it. If it's not there, then the law will be called and this all will change.
I was too stubborn to see the truth that this was out of control a long time ago.

Terrabus - I am buying my place on a 20 year "Land Contract" here. Then again I am drawing a permanent disability income, so I am never late on my payments. I went over my contract with my attorney, two realtors, and several others before I ever signed a thing!!!!! I knew what I was getting myself into for the next 20 years, well about 19 more years to go now!!

You are getting everything that was taken back, yet it has been how long since they took your property? Looking at your 1st post - Summer of 2006/ almost a year?? Do you know exactly what was taken, and do you have serial numbers for the items? Proof of what was taken, that long ago?

Better to face reality as it occurs, and deal with the issues right then - than to procrastinate...