What are a purchaser’s rights under an informal owner financing agreement?
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What are a purchaser’s rights under an informal owner financing agreement?
I am currently living in a mobile home where I am in a owner financing agreement with the mobile home owner; I also pay lot rent to the park owner. I made a down payment to the homeowner in the amount of $1000 and it was supposed to be $500 a month thereafter. I have also been making separate lot rent to the park owner. The park owner and homeowner are 2 different people. I always get a receipt for the lot rent but the homeowner has yet to give me a receipt for my downpayment or a written sales agreement and I have asked several times. Now today I get a letter from the homeowner stating that he wants another $1000 or he will start the eviction process. Can he evict me on a owner finance agreement? Like I said, I have yet to get an agreement in writing. The only thing I have are the e-mails between he and I stating and agreeing to the agreement.
Asked on July 28, 2011 New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Yes, the owner of the mobile home who sold it to you under an owner carryback agreement where you agreed to buy the unit from the seller under a set price, interst rate and monthly payments most likely has a security agreement for the promissory note you signed as part of the sale which is most likley on the mobile home.
In essence, instead of you getting a bank loan to make the purchase, the seller acted as your bank for the loan and financed the sale with the equity he has in the unit.
If you do not pay according to the terms of the note, the seller with notice to you can foreclose on the trailer and evict you from it. You might consider meeting with a real estate attorney about the documents regarding your purchase and stayng current on the loan.
Good luck.
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