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Can a land contract be made if there is a mortgage on the property?
Wiki User
∙ 11y ago
Yes. The mortgage should be disclosed and it must be paid off from the proceeds of the sale. If the buyer is represented by an attorney the attorney should arrange for the title to be examined in order to disclose any other encumbrances.
Wiki User
∙ 11y ago
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How does a personal mortgage differ from a land contract?
A mortgage is a loan from a lending company or a bank, and usual the loan was the total cost. The loan customer then has to make payments to the bank . When a loan is obtained, a customer's credit score is taken into consideration and will determine the amount of interest the customer will have to pay on the loan. A land contract avoids the use of credits scores, and payments are made directly to the property owner until the contract has been satisfied.
How would one describe a land contract?
A land contract is a contract between seller and buyer of property. A contract is only made when an agreement between seller and buyer has been reached. The seller becomes the land owner only when the full payment has been made.
You quitclaimed your interest in your home to ex who recently died. How do you get your name off the mortgage?
You can't take your name off a mortgage that you signed. When you quitclaimed your interest in the property to your ex-husband you should have made it a condition that he refinance the property and pay off the existing mortgage that has your name on it. An attorney would have, should have, advised you to do that. When you conveyed your interest in the property without getting your name off the mortgage at the same time you made yourself responsible for paying a mortgage on property you no longer own.You can't take your name off a mortgage that you signed. When you quitclaimed your interest in the property to your ex-husband you should have made it a condition that he refinance the property and pay off the existing mortgage that has your name on it. An attorney would have, should have, advised you to do that. When you conveyed your interest in the property without getting your name off the mortgage at the same time you made yourself responsible for paying a mortgage on property you no longer own.You can't take your name off a mortgage that you signed. When you quitclaimed your interest in the property to your ex-husband you should have made it a condition that he refinance the property and pay off the existing mortgage that has your name on it. An attorney would have, should have, advised you to do that. When you conveyed your interest in the property without getting your name off the mortgage at the same time you made yourself responsible for paying a mortgage on property you no longer own.You can't take your name off a mortgage that you signed. When you quitclaimed your interest in the property to your ex-husband you should have made it a condition that he refinance the property and pay off the existing mortgage that has your name on it. An attorney would have, should have, advised you to do that. When you conveyed your interest in the property without getting your name off the mortgage at the same time you made yourself responsible for paying a mortgage on property you no longer own.
Can a bank come after you if you are on deed but not mortgage?
No. All the owners of property must grant a security interest in the property by signing the mortgage. If you owned the property at the time of the mortgage and didn't sign the mortgage, the lender made a serious error. The lender cannot take possession of your interest by a foreclosure and you are not responsible for paying the loan.However, if your name was added after that mortgage was granted the lender can take possession of the property by foreclosure if the mortgage is not paid, and you are out of luck. The lender cannot go to you for payment if you did not sign the mortgage and note.
Does the bank need to know about a quit claim deed?
Yes. If the bank has a mortgage on the property there is a due on tranfer clause in the mortgage that the property owner signed That means the bank must be notified of any transfer of ownership and it can demand payment in full of the mortgage if any transfer is made. A quitclaim deed would be a transfer of ownership.
What is the statute of limitations on a mortgage payment in Georgia if it's a second mortgage and payment hasn't been made in 5 years?
In Georgia, the statute of limitations for a written contract, such as a mortgage, is generally six years. However, it's important to note that the statute of limitations for a specific debt can vary depending on certain factors and circumstances. Therefore, it would be advisable to consult with an attorney specializing in debt and contract law to determine the specific statute of limitations for your situation.
What are some reasons to breach a contract?
Some reasons to break a mortgage contract are: If the interest rate is above the legal rate for mortgages. If the mortgage is given without an underlying debt (a promissory note), the mortgage contract is invalid. A mortgage is simply a pledge of the house as security for an underlying obligation. Without the note, there is no reason to pledge the house as security. If the mortgage loan was obtained through a predatory lending practice made illegal by the Federal or state government. These are some reason to breach a mortgage contract without being liable for damages. If you break a mortgagew contract, the lender can foreclose, take the property and get a judgment against you for any loss it suffers, plus attorneys fees and court costs. In addition, even if the mortgage and mortgage note are breachable, you would be required to repay the money if you bought the house with it. The mortgage lender would lose the benefit of the bargain (the interest), but you would not be get out of repaying the loan as that would be unjust enrichment.
Does a quit deed relieve you of financial responsibility on a mortgage?
No, a quit claim deed only changes ownership of the property. The property will still remain collateral for the mortgage loan. The actual ownership of the property does not change the terms of the mortgage loan and the promise the signatories (you) made to the bank.
Can the owner of real property who is owner financing use the real property as collateral on a loan without the buyer's knowledge?
No, This is not appropriate, ( See Below ). In this situation the seller has basically made promises which it would be impossible to keep. It is almost certain the owner did not disclose this encumbrance of an owner financed mortgage note to the company that issued him a loan in the form of a colaterlized note( See the definition of Fraud ). Had he done so, he likely would not have been approved for the loan without some sort of written agreement from the buyer. The Owner financier could have legally used the Mortgage Note as collateral rather than the encumbered real property. You have several avenues of recourse at this time. you may choose to notify the Lender by certified mail that you have a mortgage on the property and are the current owner, you should also notify them in your letter that you do not consent to the lien. You may wish to sue the seller for removal of the encumbrance or for a refund and damages if you choose to declare the mortgage contract void. Most of these types of situation can be avoided by simply filing the owner financed note with your Local Municipality. This creates a record of ownership with your local authority and would likely prevent this situation from ever occurring. Financial institutions do a property records search prior to loan approval and they would have discovered your ownership interest in the property. Once you entered onto the purchase contract, "YOU" are the buyer of the property, "You" are actually the "Owner", The seller takes a position as the Lien holder on the property and is no longer the owner so long as you are not in default on your mortgage note. If you default on your note then the lienholder can forclose and retake posession of the property, only then would he again be the owner of the property with rights to place encumbrances. Answer I know state laws vary. Under Oklahoma Law, the answer is No. The seller cannot legally sell the property without a "marketible title." I would look into what is known as "substantial misrepresentation." This should make your contract voidable removing any liability on your part. Take a look at these definitions, Real Property Sales Contract: agreement to convey title to real property upon satisfaction of specified conditions. (It does not seem those conditions were met.) Rescission of Contract: The abrogation or annulling of contract; the revocation of repealing of contract by mutual consent by parties to the contract, OR -Cause by either party to the contract.
Can a second mortgage company buy the first mortgage and foreclose?
Yes, a financial company can purchase the lien on your mortgage and then foreclose on your property if you have not made sufficient payments.The second mortgagee can also foreclose on the second mortgage and take possession of the property subject to the first mortgage. In that case, the lender would have to pay off the first mortgage before it could keep any proceeds from a sale of the property..
What is a loan made to purchase real estate or land called?
A mortgage
If a mobile home is not attached to Arizona real property and you default on the mobile home what can the mortgage holder do?
In short. repossess and pull the home off the property..However, you have not made it clear who owns the land. If a third party owns the land, most if not all lenders will ask to the land owner if they are interested in leasing the land to a new owner, in which case the lender saves thousands.
