Assignment of a Rent to Own Contract by the Lender

My question involves real estate located in the State of: Maine

In 2013 My wife and I purchased a trailer as a rent to own. We have a contract and we pay the person directly though his bank account as he does not live in Maine. We owe 32 more payment half the contract left. We pay a 6% interest on the place

Today I received a email telling me he gave the dept to a charity and he wants me to start paying there instead of him. When we are done in 32 weeks he would end the UUC. My issues I feel are this I have a contract with him for the rent to own. I pay a 6% interest and when we file taxes where it is a rent to own we use for tax purpose as well .Now I am being told I have no choose but to give the money to them.

So I have 2 questions. I have a contract with him, do I have to pay the charity or can I refuse? He said I have no choose in the matter.

Can I make the charity write up a new contract that takes him out of the picture completely because he said he is giving it to them one way or the other and I would have to deal with them? I don't see how he can break the contract while, if I were to have rented the place out and said pay him, i was told i could not do it because it would break the contract.

I don't agree with paying what is seen as a rent to own to a non profit place and have to pay the 6% when he is donating the money i owe him without it even being paid for yet.

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Quoting thanadj

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I have a contract with him do I have to pay the chairty or can I refuse He said I have no choose in the matter

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There is nothing wrong with assigning your contract to another party. And, yes, you would have to pay the other party. If you didn't, you'd be in default and the charity could foreclose.

That being said, I think it would be a good idea for you to demand documentation of the assignment.

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Quoting thanadj

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Can I make the chairty write up a new contract that takes him out of the picture completely because he said he is giving it to them one way or the other and I would have to deal with them

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You can't "make" the charity do anything but you can demand documentation of the assignment and that's all you'll need.

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Quoting thanadj

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I don't see how he can break the contract while if I were to have rented the place out and said pay him i was told i could not do it because it would break the contract

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He's allowed to assign the contract unless the contract says that he can't. That means he's not breaking the contract by assigning it.

You are allowed to rent out the unit unless the contract says you can't.

Does the contract say you can't rent it out?

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I don't agree with paying what is seen as a rent to own to a non profit place and have to pay the 6% when he is donating the money i owe him without it even being paid for yet

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That's not your option.

You have to comply with the terms of the contract regardless of who owns the contract. Otherwise you are in default and could lose your home.

If you don't understand all this you might be wise to have the contract and the situation reviewed by an attorney.

How can he give my contract to a non profit as a donation Then that chairty is to collect my money for the next 2 and half years at a as I just read 7.5% interest and still be considered non profit church. My contract does not say I cannot rent, ust says I cannot move. I understand in reg companies they can sell the mortgage, but he is not selling he is giving to a non profit. He wanted me to do this 1st

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I'm donating the balance of the payments that you owe to (his name here) to a charity in Portland called (charity name) of Maine. Therefore I'm am going to send you a check in the amount of (how much i over paid) which represents the balance in your Real Estate Tax Escrow. I'm confident that you will pay your RE Tax annually on your own. Therefore the final 32 payments are to be paid directly to the Charity, each payment in the amount of $200.57, without additional funds for Real Estate Tax Escrow. You can either send the payment to the charities mailing address in Portland or deposit to their Key Bank account as you did previously to my (his bank name). Please advise as to which way works best for you? I will forward the information mailing/bank account or both.

When I receive verification from (charity church) that the final payment has been made I will terminate my UUC filing which is the record with the State of Maine of the lien on your home.

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Ok issues I 1st saw with that was this, he wanted me to deposit the money in there account while he held the lien, wanted the contract to stay the same. He would right it off his taxes on the chairty while each month i deposited the funds. When tax time came i would have no documents to use on taxes.

I requested from him a whole new contract and if I am going to pay the charity it has to be from them but same writen as he should not be able to change the terms as far as interest and remaining balance. I still don't agree how someone can take a contract give it away and say now you pay a charity who will collect the same % and still call themselves non-profit. I have never heard of this before. Have heard of companies selling there contracts never giving to non profit church.

It doesn't make any difference who he assigned the contract to. Your obligation remains the same. I suggest you either just accept it or pay real close attention to the part of the contract that speaks to you defaulting on the contract. If like most rent to own contracts it will say payments already made will be considered rent and you can be evicted at the will of the landlord.

i really don't see what your problem with it being given to a not for profit organization. You speak like such entities must be destitute businesses. Did you know the bill and Melinda gates foundation is a non profit organization and it is worth billions of dollars?

How is about the American Red Cross? The ACLU? Children's hospital in Seattle?

being a non profit doesn't mean they aren't huge businesses that deal with millions or billions of dollars. It simply means they do not make a profit in their business activities for the owners of the business but must use their earnings to pursue the organizations objectives.

from what you have stated he has not changed any of the terms of the contract. The fact is he can't.

You have no right to demand a new contract. In fact, if you seek to terminate the current contract you may find yourself without a home. Nobody would be required to enter into a new contract with you which means you don't buy the house. You need to just stop worrying about this and make your payments, at least if you still want to purchase the property. The seller has done nothing inappropriate here.

Ok can you answer this? As you read he wants to hold the lien while I pay a different source that being the chairity. If he holds the lien is it right I deposit in to a bank that he has no insight of. Because if he is going to give as charity should he not have to give them the lien. I guess last concern would be, if he holds the lien and I pay a charity instead of him at the end of 32 months he plays the i never received the payments.

That part I can understand your concern. He needs to transfer the lien to the new owner of the contract. Since he is transferring the contract to another entity he has no right to continue to hold the lien.

And my concern for giving to a non profit is as stated many times: He is giving the contract to them, but he wants to hold the lien. Would it not make sense just to pay him and he does what he wants with the money? With him giving it to a chairity that changes who I am paying in the contract so would that not requir a different contract. Whole point of all of this is to protect myself and the 2 and half years of payments and repairs I have done to this day. I am not comfortable putting the money in one bank while a whole different person holds my lien, and the contract says I am to pay him and where to deposit it

Just so you know even if he retained the lien on the property you would have a means to have it removed once the contract is completed should he be resistant but that means you would have to be able to find him and sue him. Who knows where he will be by the end of the contract.

no, it would not require a new contract because the contract is not actually changing but being assigned to a new party. Things like this actually happen quite regularly in the real estate world. Banks are bought and sold which means the holder of the debt changes. There is then a new payed for the payments but the actual terms remain the same.

many mortgages are sold immediately after they are entered into. The bank is simply the originator of the loan but it is almost immediately sold to investors. It is very common.

Thank you guys for all your answers
I know how to procceed as I await one email from the AG to ease my mind and I will request a new contract and if I am not happy with the new contract will bring in a lawyer and continue paying while they fight it out

You are not entitled to a new contract. The current one is fully enforceable. I suggest you be cautious with the demand to terminate the current contract. If you are successful and there is no new contract in place (a novation), you could find yourself homeless.