Posted on 10/12/2011 4:19:30 PM PDT by katiedidit1
SPOKANE, Mo.-- Entire neighborhoods of families in Christian County are being kicked out of their homes. The foreclosures come as quite a shock to the people living in those homes.
Ernie and Sharlene Risinger and their 11 year old daughter love their Spokane home and community, but they're being forced out. Their American dream has turned into a nightmare.
Nearly four years ago, the Risingers moved into the place they call home. "Sounded like a great deal. He wanted $1,500 deposit or down and we would actually be buying our house," says Ernie Risinger.
Or so they thought. The Risingers, like all their neighbors at River Birch Estates did owner financing with Harold Rogers. They pay him $1,100 a month on a 30 year loan.
(Excerpt) Read more at ky3.com ...
Couple thought the home was secure...owner financed with 1,500 down and 1,100 a month to the tune of 60,000 invested BUT the owner was not paying the bank..over 42 homes are being foreclosed on in Christian Co., MO. Not that the people were not paying their loan...rip off btw this is a white area with very hard working folks
That whole thing doesn’t sound like it was on the ‘up and up’, and I don’t believe that news report was telling the entire story.
Oh yes, White Water. However, this couple signed a contract to purchase the house on a 30 yr loan...the owner financed it through People’s Bank but the mistake made...buyers were forking over money to the owner instead of the bank...owner pocketed the money...fraud. Sad situation to be out of 60,000 dollars plus and have to start all over..it is going to court as there are 42 homes ...all not far from Branson
If they did not receive a payment book from the bank, they were buying on a land contract. Results are the same.
That sounds about right.
Good luck in court to the buyers.
This story doesn’t surprise me a bit. I practice law in Christian and Taney Counties, and I see these kinds of real estate deals go bad all the time.
Usually there’s some problem with the property or the parties’ credit that makes it impossible to do a straightforward sale with a bank financing the purchase—the buyer may not qualify for a loan, the property won’t pass inspection for a conventional mortgage, the seller’s existing loan on the property is undersecured, or, sometimes, the seller doesn’t even tell the buyer that there’s already a lien on the property.
So buyer and seller do some sort of “owner-finance” or “contract for deed” type deal and no title search gets done. When the bank with original lien stops getting paid, the deal blows up, and then I get hired to try to fix it.
Best I can figure is these people weren’t REALLY paying mortgages. They were ‘renting to own’ from this guy who built the houses. Early on, what they were paying him was probably more than the payments, and he was profiting on the difference.
I’d say the properties were in his name, and he levered up by cashing in on equity multiple times over the years, like the rest of the idiots, and as soon as prices fell, he was hopelessly underwater on the properties. He gets into a little trouble elsewhere, and he can no longer make the payments, no matter what the tenants do.
....Just my guess, and take that for what it’s worth.
Weren’t changes made years ago to contract-for-deed arrangements? They were common back in the 70s and people made fortunes by taking the properties back after the buyers failed to come up with huge balloon payments, then the sellers started all over again with new *buyers*.
I thought I recalled that the entire arrangement had been made illegal? Can’t remember.....
No and no, maybe some state law somewhere, but it is legal as far as I know. Crooked land agents sell property all the time like this using a common right of way. Problem is if you have a common right of way it is almost impossible to bank finance. Red flag, x amount down and balance over x years, no credit check. Same thing as saying here sucker, here sucker.
It is going to court...did you read the article? now, these are not fanny mae or freddie mac loans...payments made on time but to the wrong party is what I understand. This is not the first time some shady deals have happened in this area of MO
Looks like a land contract of some sort gone bad. They’re a rotten deal and probably should be illegal. When there are a lot of zeros involved, though, the law seems to fall on the side of the crook.
Like the old saying....be it ever so humble theres no place like home.......
Those deals weren’t all bad. I got some property that way which I have refused to sell to pressure several times. Of course, I paid 55% up front and paid it off quickly. I couldn’t do a bank deal because I had never borrowed money or gone into any debt before. That made me ineligible for a bank loan.
Relatives used to tell me and my wife that we should get back the equity in our home, that we were fools to let that resource “go to waste.” Well now we have a home, a lake house and some acreage all free and clear. The only glitch was when a renting neighbor intercepted our property tax paperwork from our mailbox and managed to get a big mortgage on our house. He got paid and the loan company simply lost the money. The dude is on Death Row at the moment for another deal he did that was less profitable to him.
What is the link to the Romney sound bite video? I know some people who still need to see it .
That would be one scary neighbor...
There is only ONE Spokane......
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