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R. Klein, EA
R. Klein, EA, Accountant
Category: Finance
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I bought a house on contract, have been making the principal

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I bought a house on contract, have been making the principal and interest payments. If the owner decides to take possession of the property back because I haven't paid the taxes or don't have an insurance binder for the home? If so how long do me and my family have to move out?

fastfile :

Thank you for your question. The question you ask is more a matter of law than finance, but I will do my best to assist.

fastfile :

Generally, if you are paying a loan, the loan document gives you specific rights and responsibilities. Since you entered into a written contract with the lender, that contract trumps all discussion here. Before signing a legally binding contract, I am hoping you consulted with an attorney.

Customer:

Hello.

Customer:

I did at the time.

fastfile :

For the most part, payment of taxes and insurance are NOT part of note, As a result, under common contracts, a note holder cannot foreclose on a borrower unless the terms f the note are not met.

fastfile :

Failure to pay taxes and insurance generally result in the tax authorities taking action, or in the case of unpaid insurance, the lender can force insurance on you and you must then pay because this is added to the note principal.

fastfile :

In any case, if the noteholder does have some unusual right to foreclose on the note, he cannot do so without taking you to court and following the proper legal procedures.

fastfile :

If he fails to do so, you can sue him and you may end up winning a substantial sum.

Customer:

I came home and this letter was in the door.

Customer:

dear Mr. Walcott

fastfile :

You cannot be evicted unless and until a judge in your state has ruled in the note holder's favor. He can't just kick you to the curb. You have legal rights.

fastfile :

Please do not type the entire letter here...

fastfile :

Has a court ruled on the matter yet?

Customer:

You are hereby notified that the real estate contract under which you held title and came into posssession has now been forfeited. Base on your failure to cure the defaults identified therein and made known to you by correspondence and other commmunicationswithin 30 days time period after being served with a notice. (I wasn't served).

Customer:

no, we have not been to court.

fastfile :

I suggest you speak with a local attorney immediately.

Customer:

he left me this letter stating me and my family have to move within 3 days.

fastfile :

Unless you have been to court, I doubt that he can force you to move in 3 days.

Customer:

Also if I intend to remain in the premises Illegally and will object to the owners inspection, you shoould promptly contact the undersigned.

fastfile :

The letter also makes no sense in its language. "The real estate contract under which you held title..." Nobody holds title to a real estate contract. They hold title to Real Property.

fastfile :

Contact an attorney. Best advice I can give. I cannot give legal advice, nor can anyone in this forum.

Customer:

He has been accepting my principal and interest payments. We are not a month behind. We intend to pay the taxes with our tax return. So how can he just come into the house??

fastfile :

The note-holder may have to explain himself in court.

Customer:

on the top of this letter says

Customer:

Notice to quit

Customer:

Notice to inspect.

fastfile :

Contact an attorney. Best advice I can give. I cannot give legal advice, nor can anyone in this forum.

Customer:

okay. what is high priority to e and my wife is when we are not home someone comes into the home. can he do that?

fastfile :

Nobody may enter your private home without legal recourse or your permission. You have the right to quiet enjoyment of your premises.

fastfile :

I understand you are upset. But you need to contact an attorney.

Customer:

Thank you, XXXXX XXXXX do that. Good service.

fastfile :

thank you

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