Legal Question in Real Estate Law in Texas
Owner Finance Mortgage Payoff Quote
I purchased a house, as is, 5 years ago.. and had the owners-finance $30K. I have paid on this mortgage for all 5 years, but recently got behind on taxes. The owner of the lien took it upon himself to pay the taxes without contacting me at all. I have never recieved any late notice or tax payment inquiry from them. Now, I am selling the house and requested a pay-off quote from the lien holder. He has given a figure of $44,000, including taxes and principle of $38,000. So now I have to return to the deed office with a no-go on that figure, since he has INCREASED the principle (which can't happen) and tacked on all other charges that I did not request them to pay or look into. If they have never contacted me, via mail or other, about any outstanding payments or taxes, can they charge me for them? #2, how can the principle increase? Any advice is helpful. As well, do I need an attorney in Texas, if I now live in GA?
2 Answers from Attorneys
Re: Owner Finance Mortgage Payoff Quote
The answers to all of your questions might be found in your promissory note and deed of trust, depending on how comprehensive they were. You should read them carefully, to see what the rules are about unpaid taxes and interest.
Also, you should ask for an accounting from the sellers, so you can see where their figures are coming from.
If, after you get all this information, you can see that the charges are proper according to the rules of the note and deed of trust, then you probably owe the full amount. If you still can't figure out where the figure came from, or can't convince the sellers to change their numbers based on the rules of the documents, then you will need a lawyer.
In summary, you should get as much information as you can about the terms and history of the note, see if you can resolve the dispute yourself, and if you can't, hire a Texas lawyer to help you. The lawyer will need all of this information that you will be gathering. Don't delay - you can lose arguments and defenses if you wait too long.
Re: Owner Finance Mortgage Payoff Quote
You need to read the terms of the agreement that you signed with the seller. It sounds like a contract for deed (but I can't be sure). If the contract provides that you must receive notice of late taxes, and that the seller can pay them on your behalf, then yes, it's permissible. If the house is located in Texas, then you should hire Texas counsel.
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