Monday, May 31, 2010

How do I get out of a land contract?

I dont want to live in this house anymore, Im a single mother of two and cannot get a refinance thru a bank. It needs lots of repairs and I cant do it!


Sell the property to somebody. A land/real estate contract allows you through the equitable interest you acquired to sell the property. When you sell the property and the contract is paid off at closing the deed that is in escrow will be recorded by the title company first and then your deed to the buyer.

Buena Suerte

Wow, dug yourself quite a hole huh?

What about child support from the ex to fix the place up?

If you've signed the paperwork, you're committed to it. My understanding (and I am not a lawyer) is that real estate was exempted from the Uniform Commercial Code, and it is subject to its own set of laws. So if you're looking for the 3 day limit that lets you change your mind after you make a major purchase, you're out of luck.

Your best bet would probably be either put the house up for sale, and pay off the land contract with the proceeds of the sale.

MAYBE you can negotiate with the people that hold the note, and see if you can surrender your interest in the house to them in exchange for being released from the deal. You'd be giving up whatever equity you have in the place, though.

You need to consult a lawyer. A contract is a legal document, only a lawyer will be able toi determine if you can/how you can get out of the contract.

FYI, the laws will be different based on which state/country you live in.

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