Land Deal just changed

[FROG MAN]

The kind old gentleman I bought the camp from I have know all my life. He only has distant family remaining whom I have never meet.I'm two years into our three year land contract his lawyer made. In twelve months the contract comes to term and I must pay the remaining balance in full.

 

It has been a rough couple of years in the market and my plans for building a house down there have been set back. He told me verbally no problem you can just continue to pay me monthly if needed but that wasn't put in writing. Sad to say Friday he died unexpectedly from a short illness.I put a call into his lawyer to see where I stand. AT the moment I don't even know who to write the next check to.One things for sure. I must pay in full in twelve months. Hard to get a loan on land with no house on it just an old camp with no plumping etc.

[mini-muffin]

That's sad to hear, hope the lawyer can tell you something soon. I'm hoping it all works out for you guys.

 

Margaret

[BEER30]

More than likely , you will still need to make payment to his estate . Being the new deal was not in writing or not discussed in front of the lawyer/s , more than likely you will have to remain to the original contract . The lawyers can hash that out or whom may be in charge of the estate .

 

Best of Luck .

 

 

BEER30

[FROG MAN]

The lawyer that handled the land agreement is not doing his estate. He says just keep mailing checks in his name to his address and see what happens. Somebody should be contacting me soon. His neighbor says not sure if he even had a will. This could get interesting.

[mini-muffin]

Since you have a contract, even without the last deal in writing, I don't think anyone should be able to contest the fact that you are buying it. So no will shouldn't really effect you on your purchase, just not sure who ends up with the money in the long run. Of course that doesn't really matter for you, just that you get to keep the property.

 

Margaret

[FROG MAN]

Yea it's a done deal I just want to know who legally to send the money to. If he has no will that could get interesting.

[BEER30]

Yea it's a done deal I just want to know who legally to send the money to. If he has no will that could get interesting.

 

If a lawyer cannot tell you , call your County Clerk's Office for possible instructions.

 

BEER30

[wes0778]

I would suspect you now need to make the checks out to: "The Estate of John Smith" and continue to mail them to the same address. Maybe even send them return receipt required.

[autopilot]

If it's like most states, if a person dies intestate (no will) then the control falls to the probate court. You would pay your money directly into the court (by whatever the mechanism the local court dictates); the court in turn dictates any distribution to the heirs in accordance with applicable state law (all of which would be totally outside your purview and I would guess outside your area of interest as well).

 

I don't know what percentage of the total original price you've got in the deal at this point, but if it is relatively substantial, a local bank (non-major) would be your best bet to get longer term financing of the balance. You can usually find a strong local bank that holds their own mortgages, rather than selling to the secondary market. They were usually the ones that were the hardest to get qualified at, but they also had fewer walkouts and foreclosures because of their lending requirements.

 

For what it's worth, I would hold off as long as I could if the current terms are good on the note you're paying into now. If the market / economy is indeed improving, you will be in a better position later and the bank will as well. Just make sure that you allow sufficient time to do everything the bank needs to have done to complete their loan acquisition. I also think this is one time that using a good real estate attorney would be worth the few hundred dollars it would cost to make sure everything is properly coordinated between you the bank and the probate court.

 

If you are extrordinarily lucky, he had a will and a very reasonable heir to deal with, that would understand the value of taking the balance over time (with interest of course) as income (with relatively low tax rates) rather than taking a lump sum and having to pay a bunch of taxes

 

Good luck in any event. I hope you get the situation you most need.

Edited February 15, 2010 by autopilot
sp

[1BigDog]

Im no expert but you may want to consider setting up a seperate escrow account with your bank and pay into that while at the same time you send notification to where you normally would have made the payment to and see what they say. Best go through a lawyer though. Until you are sure that the money is being received and credited properly I would set it aside and get it ironed out first.

[Marcarl]

A couple of thoughts for you.

First, is the market for land situation. The heirs, who ever that might be, would most likely not be interested in land, but rather in cash, so they would not be interested in having a hunk of land dumped into their lap and then have to deal with selling it. As it is right now, it is 'sold' and they just have to wait for money,, that brings in item,,

#2. The lawyer stands to make money on this deal as long as it is in motion. If you were to pay off the debt then he would be done and no more income for him, but if you negotiate a deal for a longer term mortgage, with the estate, then he has more work to do, the more years the better for him, so this might be a good deal for you in the end. Don't be afraid to push your weight around a bit, you have money invested and proof of that, so you are holding some cards,,,, not sure how good they are, but they are cards and can be used.

Another thought would be that if they pushed you, to pay in full, and you can't or won't, then maybe they would have to 'buy' you out, so now they have to come up with cash before they sell, which they might not want to do, or can't do, either.

Carl

[Yammer Dan]

We'll keep our fingers crossed down here.

[GeorgeS]

Also, due to all of the Changes in the Real Estate Market, ( Nation Wide ) I think I would want to obtain a " Current " Appraisal of the Property.

 

Most likley you will have to re-finance. You want to know what its worth, today, not 3 years ago.

 

Things have changed drasticly.

[Blackjack]

Lots of good comments already, and I would like to add to the discussion:

 

Until you are advised (legally, per the terms specified in your contract) to send the payment to another person or address, you should continue to send the payment as you have so far. However, you are strongly encouraged to send the payments henceforth in a manner that provides tracking (verification!), whether that method is Certified Mail/Return Receipt Requested, USPS Priority Mail (with tracking), FedEx, UPS, etc. Yes, it will cost you more, but it is the only way to confirm that you have done as agreed. Also, be sure to make and keep a copy of the check that you write before you seal it up and attach any delivery documentation you obtain to that copy.

 

Your local (hometown) bank will always be the best source to obtain land financing. It's a standard part of their commitment to the community they serve. Some larger banks will also provide this type of loan, so check with them, as well, for the sake of comparison pricing. Keep in mind that the limits on this type of lending are usually for 60% of the property value. Regular mortgage lenders do not typically provide funds for unimproved property. You will likely want to check with these sources sooner than later to see what your options will be as you near the end date of your current contract.

 

I hope this all goes well for you, and sincerely regret the loss of this "kind old gentleman", as they are, regrettably, becoming extinct.

 

TERRY

[FROG MAN]

OK looks good. I got contacted from the executrix of his estate and turns out she knows me and was a friend of my mothers. All looks good for the moment.

[mini-muffin]

Glad it's looking good. Hope it stays that way for you.

 

Margaret

[Yammer Dan]

Good news Gerald. Hope it stays that way.

[cecdoo]

Hope it all works out Gerald, sounds pretty good so far:fingers-crossed-emo Craig

[Grandpagak]

:080402gudl_prv:good luck my friend!! our prayers are with you..

:smile11:

[FROG MAN]

Yea I got a full year to decide what my next move will be.Were waiting to see what Ramona's job status will be. Hopefull a promotion and a raise!

[Aussie Annie]

Sending good vibes from over here too