I need to talk... hear me out!
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Original Post
Sorry in advance, this may get long...
So, we moved to a new house 2 1/4 years ago. This house rocks... I really love it. Small, but cozy and unique. The previous owners agreed to carry the loan, and my parents have been making payments. A few months ago, my parents decided they wanted to build another house on our acreage (we have 17 acres), a farmhouse, and I said I wanted to buy this house. So, I opened a low limit credit card to start building my credit so in a couple of years, I would be able to go to the bank and get a loan to pay for the house and two acres. I have three jobs, plus freelance writing stuff, so once I have a credit history, I'll be able to afford the house.
Last month, out of the blue, the owners call and say that their lawyer said we aren't paying enough monthly. They want our payments almost doubled. My parents can't afford that. So we thought, well, maybe we'll divide it sooner and by my making a payment, and them paying the rest, maybe we can squeak by. Then, the owners say, we want the realtors that sold you the house to draw up the papers for the new contract, call and arrange a time to meet with them. So, OK, Dad calls. The realtor says, we have to meet at the house. Dad says, my wife just had a baby, we are behind in the housework, we'll have to meet at your office. Realtor says, no, that won't do, owners say it has to be done at the house. By then, we were getting a really bad feeling... maybe they don't want us here anymore. So, Dad gets ahold of one of the owners... they are two sisters in their 60s. He, first of all, wants to know why it's being done with the realtors, and why at the house? She says the realtor can "explain your options" and they want to be sure the house is being kept up. What?? We weren't renting, WE BOUGHT THE HOUSE. Paid 10% down, made payments every month. What right do they have to send the realtor in here to snoop on the condition of the house, it's not like we were renting it.
They also suggested a company in St. Louis that will finance the house in a year, even for people with bad credit, supposedly. My parents have bad credit... they are filing bankruptcy next month. No company is going to give someone a loan after bankruptcy for at least 10 years. So, Dad called them back and ask, did they still want to carry the loan, they said yes, short term. So, basically, we're stuck. The owners are biting us in the butt, so to speak, and trying to take a house we paid money on, and have been paying for, away.
I don't know what we're going to do. I have $8 in my checkbook, my parents have $12. How are we going to afford a down payment on a house, or even on an apartment? Who will rent a house big enough for 3 adults and 6 kids for the amount we've been paying? How are we going to get rid of a house, garage, barn, and shed worth of stuff? Yard sale? We have glassware, furniture books, etc., that wouldn't get near the right amount. My parents have to save all this month just for the bankruptcy attorneys fee. I really don't want to move. I had such great plans for this house. I wanted to remodel it, paint, etc. Yeah, I could rent my own apartment, somewhere close to work, but its not the same as having a house to live in and love, you know what I mean? Sorry to bore everyone, I'm just so upset right now.
Posted at 11:07pm Nov 6, 2007 EST
Responses
Thanks so much, HRMB.
Honestly, what about the property could they be so interested in? 12 acres are protected under an irrevocable conservation trust, unable to be developed. The house sat empty, on the market, for over 2 years before we bought it. It's safe to assume it would sit empty for some time again.
Posted at 11:36pm Nov 6, 2007 EST
Contact a lawyer at once. You have no time to waste.
Posted at 11:39pm Nov 6, 2007 EST
this really does sound like one of those deals i saw on a programme the other week i think it was a place called Cleveland and it showed streets of boarded up houses where those people who would not normally beable to get a loan were targeted and they could afford the amount at the time but then it started to increase and they could not so they were chucked out by the police in the end. It was horrendous to see these people who said they worked 14 hour days to pay the loans and now have nothing.Their credit rating would never let them get another home again or even other loans. Only one couple got to stay they were white and she had cancer and had to plead her case. Another lot the mother before she died took out a 2nd mortgage on the family home of 40 years and defaulted and the old chap could not understand why his paid up home was being taken from him.
Posted at 11:40pm Nov 6, 2007 EST
owno, but you know there's loopholes in everything. I would find some connections at the local courthouse just to be safe.
Posted at 11:40pm Nov 6, 2007 EST
You should get a lawyer or at least a consultation with one. If you have a contract for 30 years than they should have to abide by that. You should have a lawyer there to read the contract before you sign anything new. If your parents can put off the bankrupcy for a while maybe you could pool your income with theirs and qualify for a loan for the entire property together. The price of the house should never change because that was already agreed on when you bought it and you have paid the 10% down plus any amount that you have been paying towards the house. So you are really refinancing and if the property has gone up in value that is your equity as the homeowner. If they want the house back they should have to pay current market value for it. Call around to loan companies to see if either of you or both together qualify. I would fight for the house.
Posted at 12:07am Nov 7, 2007 EST