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I had posted last year about this time about the young couple that we sold part of our farmland to. On a 5 year land contract. They built a home and didn't know that they had to build credit to get a Mtg. to pay the balloon payment to us.It was due Nov.2013. We gave them 1 year extra to get that all taken care of.
I just found out last night that they are haveing problems because the house is OFF GRID. I had no idea. I do not know why these folks seem to be so uninformed, but that is not here nor there right now. If they would have informed us of this last year, I could have helped look for info./something.
The house is quite away from an Elec. sourse which would be very expensive to install,that may be the only option tho.I realise we might have to foreclose on them, I feel horrible about that. I do not think they realize that we have put ourselves in a bind, we needed a new roof(it's leaking bad) and now there are some big taxes that we would not have to pay last year...
Any suggestions on getting a Mtg for an off grid home?
 

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You can't.
It doesn't have a CO. (certificate of Occupancy)
There are certain criteria that must be met, such as running water and waste water disposal/septic and electricity and some other things before the inspector will state the house ready for people to live in it.

Without a CO, you can't get anything, not even insurance on the property.

I am so sorry, but these folks... they have kind of made their bed.
And I hope they don't have kids, because living in a house without a CO is grounds for removal of the children from the home.

I am not saying that I agree with this or think it is right, I am just saying that's how the world rolls now.


There may be obscure financial institutes out there that would mortgage a home like this, but the rates may be high and the requirements for credit score etc.. even higher.
 

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I was told they have a gen. and some sola,r water ,septic. They are living in it. I do not know it they got a final inspection. They do have homeschooled children. Thanks for reminding me of the CO. I need info like that for my brain to work on this.
 

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you need to evict them, its only going to get messier.
 

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I was told they have a gen. and some sola,r water ,septic. They are living in it. I do not know it they got a final inspection. They do have homeschooled children. Thanks for reminding me of the CO. I need info like that for my brain to work on this.
It's going to suck for them if you evict them, and it's going to suck for you. Think you're going to get someone else to live in that house?

Best try to work something out. Even if it's not to your own advantage.
 

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It's going to suck for them if you evict them, and it's going to suck for you. Think you're going to get someone else to live in that house?

Best try to work something out. Even if it's not to your own advantage.
I sure want to try to help them out. They have never even been late with a single payment,built that house as they went with their own hands.
 

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I sure want to try to help them out. They have never even been late with a single payment,built that house as they went with their own hands.
Sounds like people I'd want living beside me at any cost, with what's coming down the pipe.

Some mercy shown may be of longer term benefit to you than greenback federal reserve notes in your pocket right now.

Plus, I think if you go through the effort of evicting them then you stand about ZERO chance of getting anything out of it.
 

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I don't know what I can do Ernie, have any suggestions? The greenbacks go to a bank, there is a note on it, we had to redo that to help them last year. That note is our name. The couple pays the taxes-which is alot, and why we sold in the first place and moved 1 and a half hours north. If we get the place back,it is in very diserable area just north of Detroit a short drive to a great comunnity. We would have to put elec. in,but it would sell fast. I just would rather find a way to help let them keep it.
 

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I don't know what I can do Ernie, have any suggestions? The greenbacks go to a bank, there is a note on it, we had to redo that to help them last year. That note is our name. The couple pays the taxes-which is alot, and why we sold in the first place and moved 1 and a half hours north. If we get the place back,it is in very diserable area just north of Detroit a short drive to a great comunnity. We would have to put elec. in,but it would sell fast. I just would rather find a way to help let them keep it.
Ah. There's a bank involved? I thought it was just between the two of you.

Not much that can be done then. Banks ... they're sort of as merciful as this.

 

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I really do not know enough about the situation to make a determination as to the right course of action. I am sure you realize by now you entered into a bad agreement, where some things were overlooked. If you evict them as you say. You will have to run electric to the house in order to sell it. Where will the money to run the electric come from? Is it a possibility to use that same money to run electric to it now, so they can get a proper mortgage?. I mean if you are going to have to run electric either way, I guess I do not see where you will be better off doing it after you evict them rather than now? You said they are paying, so you are receiving some income now. Selling a property once they are evicted is a possibility!!! never a sure thing in my opinion.
 

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That is the only thing I can think of-have elec. run. How much , I do not know. I can get out the survey and look at how far it would have to go. Lots of poles thru wetlands.
 

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At home here they will set 2 poles for free, then you have to pay for the remainder if it is farther. Therefore they can make it about an 1/8 to a 1/4 mile before it starts costing you. Is a rental a possibility? I mean instead of evicting them, just take the mortgage yourself then allow them to stay on a rent to own basis or something like that. I guess I am just looking at the fact that they are paying payments and it is a known income source, as opposed to evicting them and having no known income source with only the possibility of a sale, once you invest some more money to make additional improvements. Would they continue to pay rent as is, if you held the complete mortgage?
 

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This is out of the box - move home closer to electricity source? Do you know a Realtor or broker whom you could get advice from? Sounds like a mess and reminds me that "the road to h#ll is paved with good intentions." AMHIK
 

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Honestly, from my point of view...they are not seeing the big picture and/or not doing their homework....how many times are you going to bail them out?...my own parents have done less for me....probably because I did things myself or "by the rules" if I engaged a third party...I'm not off grid but our cabin was when we bought it....the bank never batted an eye because we had excellent credit....(part of the homework:thumb:)

I know lots of so called "granola" people who spend so much money on eating organic that when the mortgage is due the money is lacking....champagne tastes and beer money....
 

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Who actually holds the note on the place if a bank is involved?
Dh. The couple went to dh's bank to get a loan. The bank was pretty miffed after they went to get the house appraised, they told the couple that there was nothing in the area to comp it to. I just heard about the no elec. issue,now I know why the bank was miffed-a waste of time and $ to go there if there is no elec.
 

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Discussion Starter #18
At home here they will set 2 poles for free, then you have to pay for the remainder if it is farther. Therefore they can make it about an 1/8 to a 1/4 mile before it starts costing you. Is a rental a possibility? I mean instead of evicting them, just take the mortgage yourself then allow them to stay on a rent to own basis or something like that. I guess I am just looking at the fact that they are paying payments and it is a known income source, as opposed to evicting them and having no known income source with only the possibility of a sale, once you invest some more money to make additional improvements. Would they continue to pay rent as is, if you held the complete mortgage?
That is what I had thought, some way to "rent" to them, but still cancell out the LC. Get some of the paperwork out of the way.
 

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This is out of the box - move home closer to electricity source? Do you know a Realtor or broker whom you could get advice from? Sounds like a mess and reminds me that "the road to h#ll is paved with good intentions." AMHIK
Stone house would have to go thru wetlands or cut alot of woods arround the drive. Elec. going to the home would be cheeper.
 

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Dh. The couple went to dh's bank to get a loan. The bank was pretty miffed after they went to get the house appraised, they told the couple that there was nothing in the area to comp it to. I just heard about the no elec. issue,now I know why the bank was miffed-a waste of time and $ to go there if there is no elec.
So is their loan secured in any way? If you hold the note on the property, can the property be confiscated in any way?
 
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