We are building second house now. The question I have is about the land. We own the deed of that land. But the loan is on Mr.X yet. The payment is 4 times a year. I do not know anything about that loan.( interest, how much he still owes. how many year the loan is etc). You should be able to get a copy of the loan terms as they would be recorded against the land in the county recorder's office. You should be able to ascertain exactly what is owed.
And we have to pay $6000 every time to release the land for one house. We paid last loan. Do we have to pay the loan? If you don't the lender can foreclose.
If we or Mr. X do not pay the loan, I guess Bank is going to take over that land? If that happened would our credit get hurt? You are not borrowers on the loan, Mr. X is, this should have zero impact on your credit.
What is going to happen? Thank you.
Thank you for the clarification. Unfortunately you trusted that the land had clear title. I am sure you don't need me to tell you that a title search for liens should have been performed so you would have known he was lying. So here we are today where you have title with no mortgage obligation but no ability to sell without releasing the liens.
As the other attorney stated you could sue him under a breach of contract/fraud theory.
The other option is a quiet title, however, that could take some time and is not guaranteed.
You are correct that if the loan is not paid the bank can foreclose. This is based on his fraudulent conveyance wherein he did not admit to liens recorded against the Real Estate.
My first step, if you have not done so already is to perform a title search and see how much is owed against the Real Property. If you feel you can make enough money and pay off the loans I would not want you to throw away the work you started. You would obtain a release for each sale. As far as Mr. X is concerned he cannot lie and convey property and then hide behind bankruptcy after making a huge mess based on fraud. No knowing the value of the land or the potential value and how much is owed it is hard to know if moving forward is best.
You have an idea of what you can make if you continue the project, subtract what he owes from that amount to see if this financially feasible. Either way I would sue this man for fraud. This is the worst kind of betrayal.
If the only outcome is losing money you will want to get rid of the property as you will owe real estate as those payments fall to the title owner.
Can you tell me where in Oklahoma the property is locate? I want to provide you with a link for a local Land Use Attorney that provides FREE consultations that can assist with checking title, can perhaps work out a lower payoff to the lender and discuss your other options such as a fraud suit or a quiet title action.
I am sorry that you are in this situation but there are options.