How to stop the bank from forclosing on my mortgage because I land contracted the home?

Last summer I land contracted my home because I was behind on the morgage due to my husband who is self employed was seriosly injured.. I also am self employed. THe bank started forclosure because I was no longer living in my home. I live with my terminally ill mother. THe bank went behind my back to the renters and offered to sell them my home for $46k less than what they agreed to purchase the home from me via the land contract. The bank had them make the last 2 months paym,ents to them not me and now I am behind again on the mortgage. Sooo I am in forclosure, jobless, going to lose my business and my mother. I am in hell. Can someone tell me what to do. Please I need help!!

Read your mortgage contract. Virtually all of them have a Due on Sale clause. Since you sold the home without their permission and approval, they are fully within their rights to demand payment in full on the loan and to foreclose if you do not pay in full immediately.

Unfortunately you have backed yourself into a corner that you probably cannot extricate yourself from. You are legally bound to the person with whom you executed the land contract, yet you are also bound to the lender by your mortgage contract. To make things worse, you almost certainly won't be able to deliver clear title to the buyer at the agreed price in the land contract since the foreclosure will cancel your right to confer title to anyone.

I'm willing to wager that you never consulted with an attorney before you executed the land contract. If you had, he or she would have pointed these issues out to you. At this point it's unlikely that an attorney can help you un-ring this bell but at least they can explain where you sit once they review all of the contracts.

Wow! Now THERE is a major conflict of interest! That might be your salvation though. Contact another attorney immediately! TFTP http://answers.yahoo.com/question/accuse_write?qid=20090123180447AAg8XDx&kid=NbUvWzC0VTiHaDPwQNW9&s=comm&date=2009-01-24+07%3A24%3A17&.crumb=

a; work with mom

b; find a college roommate for 1 yr to cut costs.

c; spend one year studying county tax lien sales.

I will tutor you for free.

in 1-2 yrs, you will have your own house if that is your goal

That sucks, this is a very serious question that requires a lawyer....

Good analysis from bostonia.

Let's clear a few things up, though. The bank did not foreclose because you no longer lived in your home. It foreclosed because you'd fallen behind on your mortgage.

Bostonia is probably correct that the bank is relying on the "due on sale" clause of your mortgage for some of its actions. In a land contract, you have transferred an equitable interest in your property, thus violating the due on sale clause. That entitles the lender to call the loan due and payable at once. It may have done so (it's not clear from your question), or it may simply be foreclosing because you were behind in payments.

However, you may have some recourse. Your lease with the tenants was between you and the tenants. They were responsible for paying you monthly so long as you were the owner of the property. A lawyer might be able to identify wrongdoing in the bank's interference with the contract between you and your tenants.

It's OK, though, for the bank to offer to sell your tenants the home for less that what you and they had agreed to. But they could sell the property only after they owned it. And they didn't own it yet. They could still make the offer to the tenants, but they risked being in a position of not being able to deliver the house. Again, that's an issue your lawyer should pursue.

In fact, what does your lawyer say? If he/she doesn't have good responses to the above questions, find another one.