# Well,now what?



## 7thswan (Nov 18, 2008)

I had posted last year about this time about the young couple that we sold part of our farmland to. On a 5 year land contract. They built a home and didn't know that they had to build credit to get a Mtg. to pay the balloon payment to us.It was due Nov.2013. We gave them 1 year extra to get that all taken care of.
I just found out last night that they are haveing problems because the house is OFF GRID. I had no idea. I do not know why these folks seem to be so uninformed, but that is not here nor there right now. If they would have informed us of this last year, I could have helped look for info./something. 
The house is quite away from an Elec. sourse which would be very expensive to install,that may be the only option tho.I realise we might have to foreclose on them, I feel horrible about that. I do not think they realize that we have put ourselves in a bind, we needed a new roof(it's leaking bad) and now there are some big taxes that we would not have to pay last year...
Any suggestions on getting a Mtg for an off grid home?


----------



## chickenista (Mar 24, 2007)

You can't.
It doesn't have a CO. (certificate of Occupancy)
There are certain criteria that must be met, such as running water and waste water disposal/septic and electricity and some other things before the inspector will state the house ready for people to live in it.

Without a CO, you can't get anything, not even insurance on the property.

I am so sorry, but these folks... they have kind of made their bed.
And I hope they don't have kids, because living in a house without a CO is grounds for removal of the children from the home.

I am not saying that I agree with this or think it is right, I am just saying that's how the world rolls now.


There may be obscure financial institutes out there that would mortgage a home like this, but the rates may be high and the requirements for credit score etc.. even higher.


----------



## 7thswan (Nov 18, 2008)

I was told they have a gen. and some sola,r water ,septic. They are living in it. I do not know it they got a final inspection. They do have homeschooled children. Thanks for reminding me of the CO. I need info like that for my brain to work on this.


----------



## edjewcollins (Jun 20, 2003)

you need to evict them, its only going to get messier.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> I was told they have a gen. and some sola,r water ,septic. They are living in it. I do not know it they got a final inspection. They do have homeschooled children. Thanks for reminding me of the CO. I need info like that for my brain to work on this.


It's going to suck for them if you evict them, and it's going to suck for you. Think you're going to get someone else to live in that house?

Best try to work something out. Even if it's not to your own advantage.


----------



## 7thswan (Nov 18, 2008)

edjewcollins said:


> you need to evict them, its only going to get messier.


I know, my dh wants me to contact the attorney to have the letter sent.


----------



## 7thswan (Nov 18, 2008)

Ernie said:


> It's going to suck for them if you evict them, and it's going to suck for you. Think you're going to get someone else to live in that house?
> 
> Best try to work something out. Even if it's not to your own advantage.


I sure want to try to help them out. They have never even been late with a single payment,built that house as they went with their own hands.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> I sure want to try to help them out. They have never even been late with a single payment,built that house as they went with their own hands.


Sounds like people I'd want living beside me at any cost, with what's coming down the pipe.

Some mercy shown may be of longer term benefit to you than greenback federal reserve notes in your pocket right now.

Plus, I think if you go through the effort of evicting them then you stand about ZERO chance of getting anything out of it.


----------



## 7thswan (Nov 18, 2008)

I don't know what I can do Ernie, have any suggestions? The greenbacks go to a bank, there is a note on it, we had to redo that to help them last year. That note is our name. The couple pays the taxes-which is alot, and why we sold in the first place and moved 1 and a half hours north. If we get the place back,it is in very diserable area just north of Detroit a short drive to a great comunnity. We would have to put elec. in,but it would sell fast. I just would rather find a way to help let them keep it.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> I don't know what I can do Ernie, have any suggestions? The greenbacks go to a bank, there is a note on it, we had to redo that to help them last year. That note is our name. The couple pays the taxes-which is alot, and why we sold in the first place and moved 1 and a half hours north. If we get the place back,it is in very diserable area just north of Detroit a short drive to a great comunnity. We would have to put elec. in,but it would sell fast. I just would rather find a way to help let them keep it.


Ah. There's a bank involved? I thought it was just between the two of you.

Not much that can be done then. Banks ... they're sort of as merciful as this.


----------



## Muleman (Nov 8, 2013)

I really do not know enough about the situation to make a determination as to the right course of action. I am sure you realize by now you entered into a bad agreement, where some things were overlooked. If you evict them as you say. You will have to run electric to the house in order to sell it. Where will the money to run the electric come from? Is it a possibility to use that same money to run electric to it now, so they can get a proper mortgage?. I mean if you are going to have to run electric either way, I guess I do not see where you will be better off doing it after you evict them rather than now? You said they are paying, so you are receiving some income now. Selling a property once they are evicted is a possibility!!! never a sure thing in my opinion.


----------



## 7thswan (Nov 18, 2008)

That is the only thing I can think of-have elec. run. How much , I do not know. I can get out the survey and look at how far it would have to go. Lots of poles thru wetlands.


----------



## Muleman (Nov 8, 2013)

At home here they will set 2 poles for free, then you have to pay for the remainder if it is farther. Therefore they can make it about an 1/8 to a 1/4 mile before it starts costing you. Is a rental a possibility? I mean instead of evicting them, just take the mortgage yourself then allow them to stay on a rent to own basis or something like that. I guess I am just looking at the fact that they are paying payments and it is a known income source, as opposed to evicting them and having no known income source with only the possibility of a sale, once you invest some more money to make additional improvements. Would they continue to pay rent as is, if you held the complete mortgage?


----------



## 355946 (Mar 23, 2013)

This is out of the box - move home closer to electricity source? Do you know a Realtor or broker whom you could get advice from? Sounds like a mess and reminds me that "the road to h#ll is paved with good intentions." AMHIK


----------



## Ernie (Jul 22, 2007)

Who actually holds the note on the place if a bank is involved?


----------



## mpillow (Jan 24, 2003)

Honestly, from my point of view...they are not seeing the big picture and/or not doing their homework....how many times are you going to bail them out?...my own parents have done less for me....probably because I did things myself or "by the rules" if I engaged a third party...I'm not off grid but our cabin was when we bought it....the bank never batted an eye because we had excellent credit....(part of the homework:thumb

I know lots of so called "granola" people who spend so much money on eating organic that when the mortgage is due the money is lacking....champagne tastes and beer money....


----------



## 7thswan (Nov 18, 2008)

Ernie said:


> Who actually holds the note on the place if a bank is involved?


Dh. The couple went to dh's bank to get a loan. The bank was pretty miffed after they went to get the house appraised, they told the couple that there was nothing in the area to comp it to. I just heard about the no elec. issue,now I know why the bank was miffed-a waste of time and $ to go there if there is no elec.


----------



## 7thswan (Nov 18, 2008)

Muleman said:


> At home here they will set 2 poles for free, then you have to pay for the remainder if it is farther. Therefore they can make it about an 1/8 to a 1/4 mile before it starts costing you. Is a rental a possibility? I mean instead of evicting them, just take the mortgage yourself then allow them to stay on a rent to own basis or something like that. I guess I am just looking at the fact that they are paying payments and it is a known income source, as opposed to evicting them and having no known income source with only the possibility of a sale, once you invest some more money to make additional improvements. Would they continue to pay rent as is, if you held the complete mortgage?


That is what I had thought, some way to "rent" to them, but still cancell out the LC. Get some of the paperwork out of the way.


----------



## 7thswan (Nov 18, 2008)

HomeAgain said:


> This is out of the box - move home closer to electricity source? Do you know a Realtor or broker whom you could get advice from? Sounds like a mess and reminds me that "the road to h#ll is paved with good intentions." AMHIK


Stone house would have to go thru wetlands or cut alot of woods arround the drive. Elec. going to the home would be cheeper.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> Dh. The couple went to dh's bank to get a loan. The bank was pretty miffed after they went to get the house appraised, they told the couple that there was nothing in the area to comp it to. I just heard about the no elec. issue,now I know why the bank was miffed-a waste of time and $ to go there if there is no elec.


So is their loan secured in any way? If you hold the note on the property, can the property be confiscated in any way?


----------



## mpillow (Jan 24, 2003)

not sue if you find any local comps but look over here...
http://www.survivalrealty.com/


----------



## 7thswan (Nov 18, 2008)

Ernie said:


> So is their loan secured in any way? If you hold the note on the property, can the property be confiscated in any way?


Only if dh doesn't pay the payment each month. But we(dh and I) would loose over 100 thou.if the bank takes it for non payment.


----------



## Muleman (Nov 8, 2013)

So, Just so I am on the same page here with you. You and your husband co-signed basically on a loan, so they could build a house and buy the property. With the understanding that they would then apply for a mortgage once the house was built and get a loan for the house and land in their own name? Then once the bank seen it had no electric, they would not give them the mortgage? 

However, They have been making payments, to you, to cover the loan you took out for them to build the house in the first place. Therefore, if they had a loan in their name, they could continue making the payments without a problem?

I guess the land alone is not equity enough for the amount loaned for the bank to simply loan on the land purchase to them?? Or they simply do not have the credit or down payment for a simple land purchase, which would make the house and electric irrelevant to the loan?

Really none of my business, but what was the incentive for you to co-sign on the home loan? Were they friends? Or was this the only way you thought you could sell the property at the time. Sorry, Just trying to understand how it all transpired, as that would probably affect how I wold proceed.

Again, not my business, but are you financially able to carry the entire note and simply rent the house and land to them, or would that put you in a bind? Again, that would affect what I did.


----------



## 7thswan (Nov 18, 2008)

No, dh and I had the land ,it has a loan against it, the bank allowed us to sell it on LC. 
So the loan is totaly up to us to pay no matter what.


----------



## Calico Katie (Sep 12, 2003)

They're buying the land from you so everything about the house is their doing, right? Is there any possibility of them finding some other land they would qualify to buy and move their cabin to? It would be a lot of work but if they have help it could be done. Then you could sell your land.

It's an awful situation for you all to be in. It sounds like you mainly have two choices - foreclose and sell the property or do an owner will carry and have them pay you for however many years it takes to pay it off. The best thing for you is probably to foreclose and sell but you're going to feel awful. They sound like good people, just not business minded enough to have checked all the details ahead of time. I can sympathize because I don't know anything about the requirements of building a house either.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> Only if dh doesn't pay the payment each month. But we(dh and I) would loose over 100 thou.if the bank takes it for non payment.


So after you have them evicted and take the house they built, who will be making the payments on that land?


----------



## 7thswan (Nov 18, 2008)

Yes, they built a stone house, the smallest allowed in the area, 1400 sq ft IIRC. They are very nice people,this was a big dream of theirs, gardening, the animals ect. It never entered my mind they would attempt off grid, they were very inexperianced in this kind of life. They have come here, so I've seen them react to this lifestyle, and I'm pretty sure I've told them that I used to be off grid for years about 25 yrs ago. They sure didn't seem to be ready to go that far. Sheeze , I've had a battle with the Co. for them about some other issues, they could have talked to me. But, I don't know,maybe they don't talk about it because of how people treat some "homesteaders".


----------



## 7thswan (Nov 18, 2008)

Ernie said:


> So after you have them evicted and take the house they built, who will be making the payments on that land?


We will.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> We will.


Well, there you have your answer. 

You can try to work it out with them and possibly get some help paying that, plus the balloon payment, or you can bump them out and go it alone.


----------



## Ozarks Tom (May 27, 2011)

I'm not really understanding what the situation is I guess. This is what I'm getting from the prior posts:
You originally bought the property, and have a standard note on it with the bank.
You sold the property to this couple on a balloon note, and extended the balloon payment a year.
They can't get a standard mortgage on the property, including house, to pay off the balloon, allowing you to retire your note with the bank, and leaving funds available for repairs on your home.

A few things confuse me. 

One, when you bought the land it didn't have a house on it, but you were able to get a mortgage on it? or Was this 5 acres a portion of a larger property you owned with a house and standard mortgage already in place? If so, what has happened to the rest of the property? 

Two, did these people build their house out of pocket, and it's not attached in any way other than the land contract with you?

Three, if they're making payments sufficient to cover the bank note, how would the bank foreclose if you're forwarding the money to the bank?

I'd be glad to give advice, and it would probably be worth everything you pay for it, but until I have a better understanding of the who, what, when I'm stumped.


----------



## 7thswan (Nov 18, 2008)

We bought house on 10 acres next to 16 ac. vacent,joined propertys.Then We had a house with 26 acres. We sold house with 5 acres. The 21 acres was sold as vacent land. We had it up for sale, cash. The family looked at it. Then they wrote us a letter, asking us to please consider selling it on a land contract. We decided to give them a break, I guess that is our first mistake. 
The loan on the land came about before the couple asked to buy it. It would get confusing to explain more,because I was tending the animals and fixing houses and selling them while dh worked 2 full time jobs. It was fully intended to buy this farm with cash, when the 2008 community reinvestment act crashed our econ. and the value of real estate.


----------



## 7thswan (Nov 18, 2008)

So, Dh and I are responsible to pay off a loan on property, and couple has defalted on a LC 1 year ago. I guess we could rent it to them,include the cost of the loan payment and taxes. I feel I need to know alot more about what is going on with these people. How much are they trying to get a loan for-just what they owe us-or more than that? I'd like to know everything about inspections,permits ect. At this point, I'm trying to imagine more supprises with the place/situation.


----------



## Wolf mom (Mar 8, 2005)

So, trying to get a handle on this: 

You had land
Borrowed against it or transferred a note to this land as security
Sold land on a land contract
Kept note
Buyer to pay you - you to pay bank.

If I've got it right, sounds hunky from the beginning as Wrapping loans is illegal. Used to be legal, not for many years. Not too sure about land contracts though as you still own the land and any improvements the buyer makes.

If you evict, you will loose the money to pay your land loan. Can you make the payments without them?

If so, I'd evict. Not put any more money into the property NO electricity. Sell it for the amount of your loan plus closing costs. Someone will buy it as it will be a good investment with the house already there. The new buyers can run an electrical line and finance it IN along with their loan. That's the key. Financing the electrical run in with the buyers loan. 
I would get a bid from the electric company so you know the dollar amount you are talking about. No guessing here. 

Find a mortgage BROKER that deals with many loan companies and some independent financiers (speculators). They have a lot more avenues to pursue rather than a major loan company that follows strict guidelines. You may have to do the thinking for your Realtor and the prospective buyers so get as much knowledge as possible.

This is not an impossible situation. You just have to think creatively outside the box with your ultimate goal as getting out from under everything with as little cash out of pocket as possible. Do not get greedy and think you need to make a profit - stay focused on your goal of getting rid of a bad investment with these people.

Or suggest to the people already in the property, that they go for a loan financing the electrical run in with it as that appears to be the stumbling block. Maybe they need to look at a builders loan that can be rolled over into a regular mortgage after the electric line is in along with any other work the lender wants. You just need work towards getting free of this as soon as possible. If this is your choice, I'd give them no more than 4 months to pay you off. 

BTW: the electrical company here will finance long runs. That's another option for the buyer to check into.


----------



## Ernie (Jul 22, 2007)

If that other couple were here to give advice to, I'd tell them to either come up with the money to pay off 7thswan or to cut their losses and run.

I certainly wouldn't be financing any "long runs" or getting deeper into this deal.


----------



## 7thswan (Nov 18, 2008)

Thanks, Wolf Mom, alot to think about. I'll be calling the elec. company Monday.


----------



## 7thswan (Nov 18, 2008)

Ernie said:


> If that other couple were here to give advice to, I'd tell them to either come up with the money to pay off 7thswan or to cut their losses and run.
> 
> I certainly wouldn't be financing any "long runs" or getting deeper into this deal.


Ya, they know they are in deep do do, they told dh they are so afraid of loosing their home and kept apoligizing.
I think this is a good learning exp. for all those here that have to think about survival-of themselves and others.


----------



## Ernie (Jul 22, 2007)

7thswan said:


> Ya, they know they are in deep do do, they told dh they are so afraid of loosing their home and kept apoligizing.
> I think this is a good learning exp. for all those here that have to think about survival-of themselves and others.


Yes. Agreed. I'd say there are a few good takeaways from this:

1. Don't build on land you don't own outright.

2. Don't do business with banks. Ever.

3. Don't live in states where they are overly concerned with things like certificates of occupancy.


----------



## kasilofhome (Feb 10, 2005)

Dave Ramsay talks about a different type of mortgage lender he is connected with. Check his website. I m very busy with now or I would do the research for you. Aka elections are hot......


----------



## Ann-NWIowa (Sep 28, 2002)

You should only be thinking of what's best for you and your dh. They've had a year to resolve the problem. Their problem is theirs. Yours is to figure out how to mitigate your loss.


----------



## Muleman (Nov 8, 2013)

The truth is we are after all a bunch of strangers o the net. None of us know exactly what the relationship you share with these people are or what verbal agreements may have been made or otherwise implied when this all began. I think you have been given Some real good advice along with several different ways to handle the situation. I do agree, foremost in your mind should be what is best for your family. After all, it is hard for you to help anyone else, if your credit is ruined and you are bankrupt. However, I have been through difficult deals like this before, where there is not always a black and white, right and wrong answer. I would advise in the end, you and your husband need to gather all the information you can, look at all of your options, be honest with the couple about your intentions and concerns, and make a decision that you all can live with. I find it easier to go to sleep at night with a clear conscious, knowing I did the right thing by others, rather than a few extra dollars in the bank. In the end only you know what that right decision will be. I wish you the best of luck with resolving the issue.


----------



## Ozarks Tom (May 27, 2011)

It appears to me this couple went into this deal with good intentions, but little forethought. It happens all the time. Unfortunately, their problems are becoming yours, and it's time to pull the plug. They'll just have to learn from their mistakes just like the rest of us. I'd offer them a few months to bring this mess to a conclusion, one way or another.


----------



## terri9630 (Mar 12, 2012)

If the problem is no electricity run to the house, then they need to run the electricity to the house. Then they can get their loan and pay you off. They can disconnect the electricity or flip the breakers off if they want to be off grid. Instead of putting up poles have them look into buried lines if they don't want to look at them.

If they only owe for land, can't they get a loan for just the land? Not involve the house at all?


----------



## Ernie (Jul 22, 2007)

I do not fully understand the electricity thing.

An off-grid house can have electricity. Is what the certificate of occupancy demanding that they be hooked up to the grid?

Sounds like tyranny to me.


----------



## Ann-NWIowa (Sep 28, 2002)

Ernie - since when do government rules make sense??


----------



## Muleman (Nov 8, 2013)

It may seem simple to run the electricity to the house, but we need to keep something in mind. Where is the money coming from to do this??? Not everyone has the same income sources. What may seem like a small amount for some, may be a large amount for another. I remember a time when me and my wife were first married that it was a struggle to make a $43.00 a month payment we had, at this point in my life that amount would not be an issue, but I do still understand, for some it is. At the very least if the electric company ran the electric free of charge there would be $500.00 (minimum for materials alone) for a breaker box, meter box, meter loop, weather head etc. I know for some here it would not be a big deal, but keep in mind for some it would.

BTW, underground is very expensive. I got a quote from the local electric co. to go 600' underground. I am looking at about $2500.00 to the electric co. and that is with me doing all of the backhoe work and putting in the conduit, so all they have to do is pull wire and set a transformer.


----------



## Ernie (Jul 22, 2007)

And the additional cost per month.

For me to have electricity run it would cost about $6,000 ... which isn't too terribly bad.

However there are other considerations:

1. There is a monthly minimum charge for "service" whether you use power or not. $50.

2. When I hook up to power, the house gets bumped into a higher tax bracket. Estimated yearly cost $600

3. The electric company would then have the right to come on premises to check the meter.

4. Being connected to the electric grid would render my house subject to "inspection" by the state to make sure my wiring is up to code.


----------



## Terri (May 10, 2002)

7thswan said:


> I sure want to try to help them out. They have never even been late with a single payment,built that house as they went with their own hands.


In that case I would help them with the paperwork, because they do not seem to know what questions to ask!


----------



## 7thswan (Nov 18, 2008)

terri9630 said:


> If the problem is no electricity run to the house, then they need to run the electricity to the house. Then they can get their loan and pay you off. They can disconnect the electricity or flip the breakers off if they want to be off grid. Instead of putting up poles have them look into buried lines if they don't want to look at them.
> 
> If they only owe for land, can't they get a loan for just the land? Not involve the house at all?


I am hopeing that all they are trying to get a loan for is the land. They paid for the house as they built it.


----------



## 7thswan (Nov 18, 2008)

Ernie said:


> I do not fully understand the electricity thing.
> 
> An off-grid house can have electricity. Is what the certificate of occupancy demanding that they be hooked up to the grid?
> 
> Sounds like tyranny to me.


I think a bank does not want to give a loan if the security,which would be the land and house- would be risky. It would take a long time to resell the place. You know how picky banks are.


I'm woundering if anyone has told them this.


----------



## 7thswan (Nov 18, 2008)

Muleman said:


> It may seem simple to run the electricity to the house, but we need to keep something in mind. Where is the money coming from to do this??? Not everyone has the same income sources. What may seem like a small amount for some, may be a large amount for another. I remember a time when me and my wife were first married that it was a struggle to make a $43.00 a month payment we had, at this point in my life that amount would not be an issue, but I do still understand, for some it is. At the very least if the electric company ran the electric free of charge there would be $500.00 (minimum for materials alone) for a breaker box, meter box, meter loop, weather head etc. I know for some here it would not be a big deal, but keep in mind for some it would.
> 
> BTW, underground is very expensive. I got a quote from the local electric co. to go 600' underground. I am looking at about $2500.00 to the electric co. and that is with me doing all of the backhoe work and putting in the conduit, so all they have to do is pull wire and set a transformer.


Maybe 14 years back, dh asked the elec. co.how much to run. They said about 10 grand,but it would be cheeper to go with poles and they would have to cut alot of trees. It is aprox. 1500 ft from ava. pole to the build site.


----------



## Ernie (Jul 22, 2007)

100' extension cords are on sale now at Home Depot. Might be a good solution!


----------



## Muleman (Nov 8, 2013)

I have never dealt with a large mortgage company, so I can not speak to how they do things. I have always done business with local banks, dealing with local people that I know. What I know is most bankers are nervous to deal with investments they do not know anything about. I have actually had my banker ask me about a used semi-truck deal (among other things) another person was wanting to loan money for . He simply did not know if it was a good deal or not. Once I gave him some information and my opinion, he had a better understanding of the issues with used trucks and could make a better decision about their loan. You could possibly have the same situation here. Maybe the banker is simply uninformed about the popularity of rural off grid type properties and simply views it as an "Unfinished" project house, instead of a completed "Off Grid Homestead" that would attract a different type of buyer, but would attract buyers none the less, and have a decent market value. 

Out of the ordinary (meaning "Ordinary" for most of the population) property is indeed sometimes a hard sell. This is when it is very important to gather as much relevant information as you can and make a good informative presentation to the banker. Not just " I want to buy this will you give me the money? You may have to spend a little time actually educating the banker on what you are doing and why. You have to be able to put yourself in their shoes, as they all have bosses. They must be able to explain why they think the bank should take the risk to loan the money, give them the information they need to be able to explain this to the board members, and these people may have a much better chance of getting the loan.


----------



## libertygirl (Jul 18, 2011)

I understand the problem with the electric issue, however, I am also wondering about this couple's credit. Like you said earlier...good credit is good homework. Have you been able to contribute your good experience with their payment history to their credit report?

We owner carried some folks for 4 years, until they could get a loan. Their bank did get a statement from me that they had paid all payments on time.

Which also makes me think that maybe you need to request a credit report on them...That could tell you a lot about how motivated they have been in trying to get a loan. Maybe, it would help you with determining what you should or should not do to help them from here forward.


----------



## 7thswan (Nov 18, 2008)

libertygirl said:


> I understand the problem with the electric issue, however, I am also wondering about this couple's credit. Like you said earlier...good credit is good homework. Have you been able to contribute your good experience with their payment history to their credit report?
> 
> We owner carried some folks for 4 years, until they could get a loan. Their bank did get a statement from me that they had paid all payments on time.
> 
> Which also makes me think that maybe you need to request a credit report on them...That could tell you a lot about how motivated they have been in trying to get a loan. Maybe, it would help you with determining what you should or should not do to help them from here forward.


I have not been able to contribute our experiance with this couples payment record to their credit report, I do not know how to do that. But that is why they tryed to get a loan with the bank they send the payment to and is the same bank holds the loan on the land. They are the ones that said they could not find any comps-I think it's the elec. issue.


----------



## Wolf mom (Mar 8, 2005)

7thswan said:


> I have not been able to contribute our experiance with this couples payment record to their credit report, I do not know how to do that. But that is why they tryed to get a loan with the bank they send the payment to and is the same bank holds the loan on the land.* They are the ones that said they could not find any comps-I think it's the elec. issue.*




Not being able to get comps is a poor, lazy excuse. Was this from an in-house appraiser?

When there are no _matching_ comparable properties, adjustments are made with a similar property. ie: house being appraised has a garage, comparable house has none - a monetary credit is given to the house with the garage.

Do you know if the house they built is up to your county building code? Do you know if they got the needed permits to build?

I'd get the buyers to assist you in researching building and occupancy codes for your county. Then both of you go to the bank.

I certainly would not take what the bank said on first blush. Go in armed with your knowledge. Or do what I said in my previous post - find a mortgage Broker - There are such things as "_non-conforming loans_". A little higher interest rate, but if that's what's needed to get you out of this bondoogle and to keep the buyers in their home, maybe that's what they need to look for.

Either that, or if it's true that the issue is the electricity, have them finance the electrical run and house wiring in the new mortgage.


----------



## texican (Oct 4, 2003)

7thswan said:


> Ya, they know they are in deep do do, they told dh they are so afraid of loosing their home and kept apoligizing.
> I think this is a good learning exp. for all those here that have to think about survival-of themselves and others.


Sadly, they, like many, are under the impression they own something, when in reality, they're just tenants, at least as long as there's a 'note' on the property. They can't lose what they don't own.



Muleman said:


> The truth is we are after all a bunch of strangers o the net. None of us know exactly what the relationship you share with these people are or what verbal agreements may have been made or otherwise implied when this all began. I think you have been given Some real good advice along with several different ways to handle the situation. I do agree, foremost in your mind should be what is best for your family. After all, it is hard for you to help anyone else, if your credit is ruined and you are bankrupt. However, I have been through difficult deals like this before, where there is not always a black and white, right and wrong answer. I would advise in the end, you and your husband need to gather all the information you can, look at all of your options, be honest with the couple about your intentions and concerns, and make a decision that you all can live with. I find it easier to go to sleep at night with a clear conscious, knowing I did the right thing by others, rather than a few extra dollars in the bank. In the end only you know what that right decision will be. I wish you the best of luck with resolving the issue.


Relationships matter.... if I'd eaten at their house many a time, and they at mine, it would make a difference...


Ernie said:


> And the additional cost per month.
> 
> For me to have electricity run it would cost about $6,000 ... which isn't too terribly bad.
> 
> ...



Hook up a freezer, an ice box and the rest of the accoutrements, and it doesn't take long to get over 50$.... although when I first went on grid, from off, my bills were less than 50 till I got some energy hogs I couldn't have while off grid....

I was off the 'tax grid' with my home... county taxes were ~$60 (with 20K homestead exemption)... of course, the bigger the house, the more the taxes

In the last decade, they've read mine in person 3 times... after the 2nd, I complained, and the next day, the third person showed up, with a new meter (that signals usage back to HQ once a month)

No one's ever requested/demanded to see my wiring, or whether anything was up to code... joys of building without a mortgage....

******************************************
I'd let the folks know you can't take a loss.... they have to pay all costs, plus work out the balloon.... Balloons are bad, for even working class people... to save up that much extra cash.... for a homesteader, living on the edge anyway?

Best bet for 'them' is to pay to get electricity brought in.... call parents, grandparents, uncles, aunts, cousins, and get the money. If that's a dry hole, leave the 'stead, go to the Dakotas and work a few months, or better, a year, and pay the whole thing off.... may have jobs now, but those obviously aren't cutting it. Reality check time for them.... get more work/more money/get electricity, or move back to town.

Unless you're independently wealthy, it's not your job to provide welfare... if it's taking money out of your family, the choice is easy... Charity yes, welfare no. Charity is giving someone a chance, welfare is supporting them when they won't support themselves. You've given them a chance, and they've dropped the ball......knowing they'd never make the balloon, and now having a year of grace.

My electric lines are 2000' long from the mainline... I had to clear my ROW, and they did have an underground section, otherwise, the cost would have been only a grand. Call your local electric folks and ask for a quote... if they see a real home, you may get a break.... if it were a mobile, nope. Tell the family to shut their pie holes about wanting to live off grid, or they'll never put grid back there...

good luck!


----------

