Slipper Posted March 9, 2012 Share Posted March 9, 2012 I'm in a complicated situation and would love the opinions of those who are smarter than I am regarding real estate, renting, home buying, etc. I own acreage and a very small house that we lived in until last October. My mother and step-dad own the acreage next door. About fifteen years ago, they sold a small one acre lot, right where our land connects to my step-uncle and aunt. My step-uncle and aunt decided they wanted to move and since they had a bigger home, we bought their property. Since we were family, and their home was paid off, they agreed to let us make payments at zero interest. We did not do a title search since the land has always been in our family and the contract they signed stated that the land was free of any mortgages or liens, etc. They had a lawyer draw up all the paperwork. We recently inherited some money and after discussion decided to pay off our home to my step-uncle and aunt. They, of course, were more than happy to let us pay it off. They contacted the attorneys to prepare the final paperwork. Then we hit a huge snag. My step-dad called me this afternoon to tell me that somehow the mortgage he and my mother have on their property, includes the property we are trying to buy (and currently live on and paying for). He said that the bank (Wells-Fargo) obviously made a mistake when preparing the documents. (I'm not mentioning Wells-Fargo to bad-mouth them, but I wanted to mention them because I consider them to be a reputable company and I'm not sure HOW they made this type of 'mistake'). He said that their lawyer is going to contact them and get our property out of their mortgage but it might take a few weeks. (We were supposed to sign everything next week). As much as I love my mother, this isn't the first 'deal' I have been burned on. And my step-dad is really a snake. I'm not sure that this was an 'accident' or a 'mistake'. I don't know that my step-uncle and aunt knew about it though. They have always appeared honest to me and my step-aunt worked at a real estate company for years before retiring. Obviously, I'm not paying it off at the moment, although I will send in my next payment (due on the 15th). Nobody wants to tell my husband (and neither do I honestly), so I can't discuss this with him. He has been under tremendous stress at work and is having health issues. I don't want to bother him with it. My question is, how likely is it that something like this is a mistake? And how easy is it going to be to correct it? They just re-mortgaged their place last year. I feel like I'm being made a fool of and if I continue to smile and say that I know it's a mistake, how naive do I look? Or, is this a common mistake? Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted March 9, 2012 Share Posted March 9, 2012 The paperwork that the lawyer drew up should have had a land description attached which specifically identified the land that you were paying for. Quote Link to comment Share on other sites More sharing options...
Slipper Posted March 9, 2012 Author Share Posted March 9, 2012 The paperwork that the lawyer drew up should have had a land description attached which specifically identified the land that you were paying for. It did and it's the land that we're on right now. However, apparently that land was also in my mother/step-father's paperwork (description) that has a mortgage on it for them. (They owned it originally). Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted March 9, 2012 Share Posted March 9, 2012 It did and it's the land that we're on right now. However, apparently that land was also in my mother/step-father's paperwork (description) that has a mortgage on it for them. (They owned it originally). I think you need to do a title search now. What was your aunt and uncle paying on and to whom did they pay it? And did they get a free and clear title so that they could sell it? Those are the questions, that need to be answered, I think. Quote Link to comment Share on other sites More sharing options...
Lara in Colo Posted March 9, 2012 Share Posted March 9, 2012 get a real estate attorney---ASAP. Quote Link to comment Share on other sites More sharing options...
Slipper Posted March 10, 2012 Author Share Posted March 10, 2012 I think you need to do a title search now. What was your aunt and uncle paying on and to whom did they pay it? And did they get a free and clear title so that they could sell it? Those are the questions, that need to be answered, I think. I'm definitely having a title search done before we make the final payment. My aunt/uncle paid my mom/step-dad the money for the land. It was basically a gift to my aunt/uncle and they bought it for "$10 and other considerations". They gave me a copy of the deeds when we moved in. I feel like my aunt/uncle felt they genuinely had the right to sell it. I think that my step-dad (and probably mother knew about it) were trying to up the value of their property for their mortgage. But, wouldn't Wells-Fargo have done a title search prior to giving them the money? What's even more odd is that other than my step-dad, nobody else has called. I would have thought that my mother, aunt/step-uncle, etc would have called. Honestly, if I were about to receive a fairly nice sum of money to pay off a house, I would be almost hysterical to find out that it was being held up. I would want to reassure the person that I hadn't lied. Quote Link to comment Share on other sites More sharing options...
CalicoKat Posted March 10, 2012 Share Posted March 10, 2012 I think you need to do a title search now. What was your aunt and uncle paying on and to whom did they pay it? And did they get a free and clear title so that they could sell it? Those are the questions, that need to be answered, I think. Yes, things lie this do happen. My folks sold part of their land that had the house, but it didn't include the garage which was connected to their business (greenhouses) BUT the mortgage papers to the house included the garage even though it was clear in the papers for the business & garage that it wasn't included in that deal. It took a bit but it did get ironed out. Ask for the paperwork your Aunt & Uncle have from the original deal back when they bought the land & built a house from your folks. That paperwork should clear things up. :grouphug: This too shall pass. Quote Link to comment Share on other sites More sharing options...
Slipper Posted March 10, 2012 Author Share Posted March 10, 2012 Yes, things lie this do happen. My folks sold part of their land that had the house, but it didn't include the garage which was connected to their business (greenhouses) BUT the mortgage papers to the house included the garage even though it was clear in the papers for the business & garage that it wasn't included in that deal. It took a bit but it did get ironed out. Ask for the paperwork your Aunt & Uncle have from the original deal back when they bought the land & built a house from your folks. That paperwork should clear things up. :grouphug: This too shall pass. Thanks. I hope this is all just a simple mistake. I do have the paperwork from when they originally bought the land from my mom/stepdad. They gave it to me when i moved in. I'm not sure why they thought I would need it, but they gave it to me. Quote Link to comment Share on other sites More sharing options...
elegantlion Posted March 10, 2012 Share Posted March 10, 2012 get a real estate attorney---ASAP. :iagree: These are the type of situations you don't want to deal with without some professional representation. Quote Link to comment Share on other sites More sharing options...
Happy Posted March 10, 2012 Share Posted March 10, 2012 get a real estate attorney---ASAP. :iagree::iagree::iagree: Quote Link to comment Share on other sites More sharing options...
AK_Mom4 Posted March 10, 2012 Share Posted March 10, 2012 What's even more odd is that other than my step-dad, nobody else has called. I would have thought that my mother, aunt/step-uncle, etc would have called. Honestly, if I were about to receive a fairly nice sum of money to pay off a house, I would be almost hysterical to find out that it was being held up. I would want to reassure the person that I hadn't lied. Given the characterization of step-dad as a "snake", I would make the calls to your aunt/step-uncle/mom yourself. If everything is just an honest mistake, no harm done. But if this is something shady somehow, it's best to get it out in the open. And definitely get that attorney working on it for you! Quote Link to comment Share on other sites More sharing options...
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