Legal Question in Real Estate Law in Illinois
Parents mortgage holder for a slow payee
My parents aged, 75 and 72, respectively sold a building. My mother and father decided to be the mortgage holder for the man and his wife and the man had recently bought another property and could not get bank financing. The sale took place in 11/99 and the final payment is due 1/2002-a balloon payment. The purchasers have been slow about paying and my parents have not been able to contact them. The purchaser bought the property "as is", signed two waivers to that affect, declined to have the property inspected. Prior to the sale, any/all violations were taken care of--my dad has all the paperwork to prove this. After the sale, the city found violations which the purchaser insists my father is responsible for taking care of these. The notice from the city came in the purchasers name. My parents are worried sick; they both have serious health problems and don't deserve or need the hassle. Can you provide advise to help them--PLEASE. Thank you.
1 Answer from Attorneys
Re: Parents mortgage holder for a slow payee
I don't want to be too specific without having an opportunity to review the documents related to the closing, but from what you describe, your parents are in the right. As long as your parents did not fail to disclose known defects, it seems the purchasers are without remedy against your parents. They own the place, your parents are merely the "bank" so to speak since they effectively loaned money to the purchasers so they could purchase the property.
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