How we were ripped off big time and have to move (long)

Discussion in 'The Watercooler' started by MidwestMom, Mar 11, 2009.

  1. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Six years ago we signed a land contract to buy our house from the owner. It is very specific and he can't change it without our agreement and for six years we faithfully paid the bank, thinking we were paying down the mortgage toward ownership as that was the agreement stated in our contract. Even a lawyer said that it was a good deal.

    Fast forward six years. Hub gets a nasty e-mail from the owner who has lived in four houses since blowing this town. He wants us to get a mortgage and buy the house or sign a "new lease" (it was never a lease) and pay a lot more and go month-to-month, as if we are every day renters. He DID NOT deduct our payments toward the sale of the house either. In fact, he upped the price, siting late payment fees that we never should have because we never paid late. Anyway, none of this was the agreement and we could go to court on it, but this is, frankly, not a very nice house. It needs tons of work, and since we see this side of the man, we don't want his house anymore. We only took it because our credit is still recovering and we didn't think we could get a mortgage back then. I'm still afraid we can't, but there is also hope that we can.

    We are working with a big mortgage company and the woman who is representing us is used to doing loans for people with so-so credit. I hope we get a mortgage. We only need $60,000 for the house of our dreams as home prices are very cheap out here in small town Wisconsin. We can afford it and have built up some credit within the past six years (at least hub has--we're doing it under his name). The mortgage company is being very optimistic. She's acting like it will happen. I'm scared to death because we have no choice--we have to get out of here. We don't want to fight this jerk in court. It would probably be expensive. He probably does this to lots of people and we are just more of his dupes.

    If anyone knows of good lenders for people with less-than-great credit PM me :redface:. Aside from that, we are crossing our fingers. If we are turned down completely, we will have to purchase a mobile home. I drove through a nearby park today and some of the units are really nice, but they are very small for four grown people (my kids are grown people size) and four dogs and we won't part with our pets. Fortunately, though, they do their own financing and are more flexible than banks.

    I was thinking that NOBODY would give us a mortgage in this day and age, but actually this lender seems enthusiastic. I don't know if it's because hub has stable job (works for the county and his job is secure). I don't know if it's because so many of the houses are standing empty. I don't know if it's because we aren't needing a big loan, like you do in so many big cities. I'm doing my best to stay positive. I really don't want to try to cram all of us into a trailer.

    Any creative suggestions are welcome. I know that all of you have many different talents and knowledge and sometimes you know things I don't know. Thanks for reading :faint::alien:
  2. everywoman

    everywoman Active Member

    I have found that working with your local bank, especially if it is locally owned and operated, is the best way to go. Are you a member of your town's credit union---often city, county, state employees can get loans through them.
  3. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    We are. They'd give us a loan, but we'd have to put down a larger amount than we have. So we have to do it this way.
  4. susiestar

    susiestar Roll With It

    Wishing you the best of luck. I hope you can get out from under the home you are now in and get something very nice that is still affordable.

    As for the home you are in, it would be worth it to have a lawyer review your current contract and see if you can insist on having some $$ that you paid refunded to you because the owner broke the terms of the contract.

    Whatever happens, I am wishing you the best of luck.

    Sorry for all the stress.
  5. DammitJanet

    DammitJanet Well-Known Member Staff Member

    No chance Hubby is ex military is there? VA loan. Always look for assumable loans too. Dont discount your income counting just because its disability. I bought my car just on my disability income.

    If you have to go for a mobile home, look for a doublewide. Mine is huge! I have 4 bedrooms plus an office off my master bedroom. Living room, dining room, family room, kitchen, two bathrooms, laundry room. It is really too big for me now but I bought it when I had three boys, me and tony, plus my mom living here.
  6. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    I don't think he has any VA left, but we aren't sure. We used it once a long time ago.
    THanks for the hopeful feelings about the double wides. If we need to, we'll do it. I've been really nervous about all this.
  7. susiestar

    susiestar Roll With It

    MWM, While I don't live in a trailer, I have a relative who does. Her double wide is bigger than our first house was! The ones available now are really NICE, at least the double wides I have seen. And many have a lot of storage features built in.

    I hope this gives you even more hope!
  8. Star*

    Star* call 911

    Um - I went through this EXACT SAME THING 9 years ago - credit and all.

    I tried to PM you with some information but either ya don't like me or you never unblocked your thingy for PM.

    - I shall, of course, assume it is the latter. - Naturally!
  9. KTMom91

    KTMom91 Well-Known Member

    Does your county have any kind of first time buyers program? I got into my house with $1500 down, with the county paying the rest. I was a single parent at the time, not earning much, and my credit was not great. Here in CA, it's through Housing Authority. They also counted a first time buyer as someone who hadn't owned a home in more than four years.
  10. Shari

    Shari IsItFridayYet?

    I hope this works out! And the double wides today ARE really nice. In fact, in our area, a double wide on land and a solid foundation will appreciate as well as a cutom built home.
  11. Hound dog

    Hound dog Nana's are Beautiful

    I found that when the morgage co is enthusiastic that it's a very good sign. Usually they'll tell you up front if they think it's a no go.

    Shari has a point.......if you wind up having to look into double wide trailors....look into what they call pre-fab homes. They're similar......nice but cheap.........and are on a solid foundation.

    Keeping fingers crossed this works out for you. Burns me up about this jerk and his contract. My sister sold her last 2 houses via rent to own......and were good to the families that bought them. It was a good deal for them both. Sorry you wound up with Mr Ripoff Man.

  12. timer lady

    timer lady Queen of Hearts


    My brother has bought 3 houses through VA - no down payment. Check it out - may help with the lender situation as well. Good luck.
  13. SomewhereOutThere

    SomewhereOutThere Well-Known Member

    Thanks a lot, guys. I feel better now :)
    I guess I'll try to stay positive. The lending company is positive--and I look forward to Mr. Ripoff suddenly learning that his house is empty.
  14. susiestar

    susiestar Roll With It

    MWM -

    BEFORE you sign anything with a new mortgage, have a lawyer look at the old contract and see if you will be required to pay anything if you move out. Just because he won't turn the title to you, and didn't apply payments appropriately does NOT mean that he may not have a legal leg to stand on if you move out adn he wants more of your $$$. Just be careful. If at ALL possible have some sort of paperwork drawn up saying you will make no claim to the property and you owe no more payments to him.

    Be sure to CYA!
  15. rejectedmom

    rejectedmom New Member

    FHA loan? Or HUD? They both require lower down payments than traditional bank loans and there are some buyer protections that go along with them. -RM