Legal Question in Real Estate Law in Ohio
Land / Home Contract
A few years ago my wife and I bought a house from some family friends. It was a simple land home contract at $500.00/month no interest. Recently I found out that they took out a home equity loan for about $24,000.00 against the home that I'm paying for! My question is, is this legal for them to do?
1 Answer from Attorneys
Re: Land / Home Contract
Your Land Installment Contract will determine whether the Seller can do this. Hopefully the contract is recorded so you have priority over the mortgage. If not, your agreement is subject to the mortgage. Record it NOW if you have not. The Seller by law was obligated to do this right after the contract was signed.
As long as you still owe the Seller more than the Seller's mortgage amount, the mortgage will be paid from escrow when you take title. If not, you need to hore the Seller can come up with the difference to pay off the mortgage.
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