All Forum Posts by: Dawn Anastasi

This is similar to the "subject to" discussion in regards to how a lender will notice that the title is not there anymore. Those people 'assure' that the lender will NOT call in the loan, even if they do find out, because they would rather have someone paying on the loan than going through a foreclosure process.

When I did a land contract back in 2011, that bank had no issue with approving it, and the insurance basically was set up so that the bank was 1st position and I was 2nd position. But in that case, the loan was directly with them, and not with Fannie Mae like this other bank is.

There are usually 3 parts to a mortgage payment -- principal, interest, and escrow. The principal is going to pay off the loan itself, the interest is an expense, and the escrow pays for insurance (an expense) and property taxes (an expense).

How would the bank know that the property has been sold on land contract? Since I made the inquiry, would they be watching it now? Would they notice when I cancelled the insurance?

If the lender called the loan, I would not be able to pay it. The balance on the loan is about $43K. Because the property is in a rural area, it's also harder to find buyers.

The property sale price would be $72,500. It's a large property (2125 sq ft) but in a rural area so prices are lower. 20K down would be 27.5% down payment.

I have a property located 2 hours away from me that I'm trying to sell. My realtor did find me a buyer, and they are willing to pay a reasonable price, however they don't have the best credit and want to put down $20K (inheritance money) and the rest via land contract for 2 years until their credit improves. However I checked with the bank I have the mortgage on, and they will not allow the land contract.

So I checked with the bank to see if they would give me a mortgage on another property I own (that doesn't currently have one), and they would not because I purchased it over 12 months ago. So I asked about putting a mortgage on a 3rd property, and they would not do that either because I bought it for such a low price. (The seller was desperate.)

So I'm not sure what to do now to get my original house sold! The best I can do is WAIT for a buyer who can get a regular mortgage, instead of a buyer who wants this property NOW. Frustrating!

Any advice or ideas?

I am also in Milwaukee, WI. I have never been to the Brookfield meeting.