Posted by Doug Pretorius on May 26, 2000 at 17:12:57:
I’m no expert, but similiar concerns have been voiced regarding lease/options round about this website, and you already have the answer: escrow the deed.
What happens if they die… - Posted by Scott SC
Posted by Scott SC on May 26, 2000 at 10:18:33:
Hey guys,
I have one I’m not sure about. My sister-in-law is about to sign a Land Contract on a house for 25 years. Well, the seller is 67, doesn’t have a wife or children. She asked me if there was anything she should be weary of before signing. I told her to make sure the LC gets recorded and set up an escrow for the payments.
Then I thought, this guy is 67 and the LC is for a term of 25 years…if my math is right, let’s see carry the one…this guy will be 92 when it’s paid off (I know it’ll never be carried to full term but hypothetically).
If the guy dies a year from now, God forbid, what protection does she have? Is there something she can record with the contract to ensure her beneficial interest? Should she put the deed in escrow?
Somebody help me out please…
Scott
Re: What happens if they die… - Posted by David Alexander
Posted by David Alexander on May 26, 2000 at 19:24:28:
This is the way I’d look at the deal if I were doing it myself. I’d want to know who the heirs are? So you’d know who your going to be making payments too.
Otherwise just put the deed into escrow ( you might even broach them about putting the deed into a trust and having that in escrow for ease of transfer to you the heirs and you when it’s paid off) and record the contract for deed.
David Alexander
This is probably all pre-arranged! - Posted by Aureillio A
Posted by Aureillio A on May 26, 2000 at 11:13:02:
Them old people are funny! I would think that the lady (Knowing how old she is) would probably pre-arrange with her undertaker to have a deposit slot installed in her tomb. Simply take the monthly payments (preferably CASH) and just deposit it! No Lines, No Late Fees, No Questions To Answer!. It doesn’t get any better than this.
Best of luck Scott SC
Aureillio
No seriously… - Posted by Scott SC
Posted by Scott SC on May 26, 2000 at 14:08:14:
What can be done?
Re: No seriously… - Posted by Bud Branstetter
Posted by Bud Branstetter on May 28, 2000 at 17:42:02:
If you are going to use the method above of depositing the payment into the casket. Make sure it is an IOU note payable in heaven.
On the serious side, I would ask them to do a performance mortgage to secure my interests. The mortgage can be added to the insurance policy so you solve problems with rebuilding or losses. It will also allow you to foreclose to clear and give you title if needed.