MTG_BANKER_OH~~~Have some ??? for you..

[lilgoose]

Filed Ch 7, discharged Dec, 2005. House was included in bk, so we no longer have that mtg or equity loan. CountryWide is still listed on CR as we are behind (I can't remember exactly what it says and can't locate the report), but all else seems to be okay.

Reaffirmed our van loan and have not been late on any pymts.

We are currently purchasing the home we are in on land contract. Pymts are auto withdrawal, so they are always on time.

Pluses for the credit history.

Is there anything that you can do for us to get us out of the land contract and to actually purchase this home? We are land contracting for what the appraised value of the home is, and have made 6 pymts with the seventh due on the first. I think the value of the home is really low as the houses around the town we live in are selling for much higher (in town) and we live just on the edge outside the city limits.

We do live in Ohio. Do believe the credit number was upper 500's.

What would be some of our options? What could we be looking at as far as the interest would go? How do we know that we are not going to be taken for a ride since we filed bk????

Hope to hear back from you soon!

[Minnymouth]

Is the foreclosure on the home you are purchasing back on land contract???
Do you have a land contract in writing? Signed, sealed and delivered?
Has it been recorded at the courthouse? (This is very important). This protects your interest in the home/land in case the owner claims bankruptcy or tries to sell it.
As soon as you make 12 "on-time payments" on the land contract you can probably refinance. Your interest rate will be a little higher but you can get it out of the land contract.

Get back with me on this....... protect yourself......

[lilgoose]

File with the courhouse??? What is this and how do we do it???

The houses are not the same. Let the other go back. Found this one and did the land contract.

We have a contract thru a company that builds new homes and even takes homes in as trade-ins towards purchasing a new one. So, it is all signed and on the up and up. Our contract shows what our pymts will be for the duration of the land contract. The only way to get out of the land contract is if we sell the house or if we refi out of the LC.

The LC shows how much of each pymt goes towards paying on the principle. So, we are getting the benefits (even the tax benefits) of owning without actually owning.

[Minnymouth]

A land contract is like a mechanics lien......(in a round about way)....
You don't have the orginal deed and won't get it till the home is refinanced and in your name.....
The land contract can be recorded at the courthouse to protect your interest in the land/home. (If something should come up, or the owner tried to sell the land/home, you have on record at the courthouse that you have a vested interest in this home/land).
In most states a legal document is not legal and binding in the eyes of the court unless it is recorded at the courthouse.
I am not sure about Ohio laws on this but I would say it's basically the same situtation.
I am purchasing my home back on land contract for 12 months before I can refinance it. Mine is recorded at the courthouse to protect my investment, should the owner get the "itch" to sell it to someone else, claim bankruptcy, get divorced, die, etc. I do not want my investment down the tubes next year because he wants to sell, divorce or died and it become part of his estate.
By recording this land contract I have a recorded legal/binding document that states I have 1st vested interest in the land/home (like a lien - but not a lien). The owner cannot sell or borrow against this land/home without my approval also.
Protects me and my interest..... who wants to pay for a home/land that someone might get the itch to sell to someone else after a year.................. NOT ME.....
So protect your interest - get it recorded.
No reason to tell the owner either that you have recorded it, mine doesn't know...... (my lawyer friend said there was no reason to tell the owner that I had)....
Don't get me wrong - if I breach my contract with the owner - he can still take the property back....... that's why I won't leave it in his name any longer than I have too....

Keep me posted,

[lilgoose]

Thanks! We are going to go take care of this as soon as possible. Have to wait for the other half to get home. I will call the courthouse tomorrow and see what all we need to do and how much it will cost to do so.

So, I wonder if we could get out of it prior to the end?? Would love to move to Florida.......Oh, beautiful dreamer dream unto me......

Do you know any more about this mortgage guy????

Gotta run the kid to baseball practice now....be back in a few.

[Minnymouth]

I'm gone for the afternoon but will get back with you later on this.

Minny

[alh]

With a well written land contract, you are pretty safe. You do need to record something at the the courthouse to protect yourself. It doesn't even need to be the land contract itself. (some land contracts have clauses that say they are not to be recorded) In that case you can file something to the effect of a notification of agreement so that if a title search is done they would contact you to find out what the situation was with the property before they loaned against it.

The danger of a land contract in Ohio is that unless enough equity (20%)has built up in the property you can be evicted (rather than foreclosed) out of the property. Not all states are like this.

[lilgoose]

alh,

This is a company that is well-known and pretty large. Not much worry about them trying something shady. Sounds like we just need to go to the courthouse.

How did you find out about the 20%?

I know we would both like to get this refi'd as soon as we can. Don't like to "not know" and know that any upkeep is done without benefit to us....We have to keep things up but if it was for us, it would be easier to swallow.

I would really like to know some companies that we could check into. Even this guy that is on here would be great to hear from. Just wish he would get in touch.

We are working on getting life back to normal and on the right and upward track...So, I guess it is a matter of time and things will smooth over. I can look at it this way: If we are meant to have this house, then it will work out the way it is supposed to.

[Minnymouth]

Best suggestion I can give you is try to save up 10 - 20% downpayment and then most anyone would finance it for you, even out of bankruptcy..... the sooner the better..!

And do record your document at the courthouse....

[alh]

Ohio is one of the few states that have codiefied land contracts although more are doing so. The 20% is from the Ohio revised code. The best analogy to a land contract is financing a car. You have the car and can do with it what you want, but the finance company has the title until you pay it off. That doesn't mean the finance company can come and drive your car. It is just easier for them to get the car back in case you default.

It has to do with the difference between legal and equitable title. With a land contract you own equitible title but not legal title.

Anyway, it is pretty easy to get something recorded. For the most part it just has to be notorized. Call the county clerks office for any specific requirements they might have.