Q: I bought a house in 2009 and still make payments. Now the seller wants to take it back because its value has increased
I am one of three owners who signed contracts on the same day in 2009. Nothing was said until a few weeks ago, when
the seller wants the houses back. Our contracts contained a balloon payment clause for 2013, but the seller
said he would not enforce it. None of us had a lawyer, nor did the seller. We have made monthly payments to him
on time since 2009. He says that was just interest. But the contract does not specify the interest rate.
We hope this kind of contract cannot be enforced after all these years.
A:
If the title was transferred to you and the other two owners the three of you own it and he cannot just take it back. If it had a balloon mortgage and you have not paid the balloon he can file a foreclosure action and possibly get title back as the result of the foreclosure action.
In any event you should see a real estate attorney as soon as feasible and have the attorney review whatever documents you have and possibly do a title search to determine the status of the title to the property. Not knowing what the original agreement was things may be more complicated and even require a lawsuit to clean up the title. Unfortunately things like this happen when people decide to buy and sell property without legal representation. Quite often the action to fix the problem costs many multiple of times more than having an attorney represent at the closing would have cost.
Good luck.
A: If the only payment which is arguably delinquent is the balloon which was due in 2013, foreclosure on account of that delinquency would probably be barred by the statute of limitations.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
