Land Contract Question?

Question

I have a question that I need some help on. I am renting a home through Land Contract. The owners recently moved to another state, and want me to send them payments instead of sending the payments to the bank like I have been. They told me they would set up an account through the bank that they got the loan through so I can make payments there, but they have not done that yet.

My questions is. If I send them my payment and they don't make it. Can the bank take the house from me? Would they let me keep the house and honor if I show them proof that I have been making payments, and that I have a Land Contract agreement and just go after owners? Or would they take the house and make me move out.

I don't feel comfortable sending the payments to the owners. I don't understand why I just can't keep sending payments directly to the bank like I have been. Please give me some guidance on this issue. Any help would be much appreciated.

Thanks so much for your time,
Bobby

Answer 1

You are wiser than most here. Stick to your guns. Until they get that account set up, continue sending the payments to them, made payable to them AND the bank/lender. I think they will get the picture then.

I've seen more than one poor soul on this forum whine when they made payments directly to the owner, and then found out the house they thought they were buying was being foreclosed upon due to non-payment.

If the owners do not make the payments, the lender could not care less about any sort of side agreement between you and this seller. They will come after their collateral directly, and that collateral is the house in which YOU live.

Answer 2

I see this happen a lot here! Beware. If the sellers do not pay that mortgage the house goes into foreclosure, and the loan gets called due immediately along with all the attornies fee, late fees, interest, and foreclosure fees which can end up being $10,000 or better! I'd try and buy the house now or get a good Real Estate attorney. They will not let you stay in the house, you will have to sue the owners and all that ends up doing is lining the attornies pockets! I'd also be careful of your wording..you said you are renting the house..if you have entered into a land contract you are buying the house and making mortgage payments on it..NOT renting it. Good luck!

Answer 3

If they do not pay the bank, the bank could care less who you have been paying. I would continue to pay the bank. Good luck, the bank will repossess the house and throw you out.