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RealEstateNate, Lawyer
Category: Real Estate Law
Satisfied Customers: 10686
Experience:  Nearly 8 years advising clients on real estate matters.
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I am buying a home on a land contract, the owner is being foreclosed

Customer Question

I am buying a home on a land contract, the owner is being foreclosed on. I have never missed a payment, never late and I put $7000 down on the property. He has apparently not been paying the mortgage. What can I do to keep the house or get my money back
Submitted: 5 years ago.
Category: Real Estate Law
Expert:  RealEstateNate replied 5 years ago.
Thank you for your question. Be sure to go ahead and bookmark for future questions.

The status of the property is between the owner and the bank. The issue of the money is between you and the owner. To get your $7,000.00 back you're going to have to take them to court. The Indiana small claims limit is $6,000.00. Since hiring a lawyer will cost you more than the difference of $1,000.00, you should do this yourself. The local court clerk has the forms you need to begin and proceed.

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Customer: replied 5 years ago.
can i contact the mortgage instatution and try to assume the mortgage.
Expert:  RealEstateNate replied 5 years ago.
If you are credit worthy, they certainly would entertain that idea. There's certainly nothing wrong with trying it.
Customer: replied 5 years ago.
You cannot be serious as far as these answers. They tell me nothing-they sound like a horoscope
Expert:  RealEstateNate replied 5 years ago.
Well, you have two options. Either sue this person for a return of your money or try to work out something with the bank. If your credit is even remotely less than perfect in the current environment, you would have to go the small claims route and forego the property.

Legally, those are your options.
Customer: replied 5 years ago.
is there precident for contract/lease owners taking over the owners mortgage after foreclosure?
Expert:  RealEstateNate replied 5 years ago.
It certainly is legally possible. That's more of a business question than a legal question and would be a business decision by the mortgage company. If they can find someone to assume the mortgage who they believe can meet the obligations and the original lender signs off on it, it's in their best interest to do so. That is certainly an option.