Contract for deed?

[juststartingout]

A Friend of mine was asking me if a Contract for Deed can be discharged using a CPN and I didn't know what to say. I am trying to look stuff up on it to learn for meself. I am thinking no - because a debt hasn't been created out of 'thin air' by a mortgage -but yet, HJR says it can be used to discharge all debt public and private. If it would be issued, how would the person they have the contract with go about redeeming it?

I am in the midst of this now.



I have sent the CPN's to the bank for 3 accounts, including a Mortgage.



They ignored it, and then I did an affidavit of fact, and got a friend to do an affidavit of mailing:



The Affidavit of mailing included the copies of the original letter asking for certified verification, and asking them to produce the note so that I could view it.



It also included a copy of the CPN, and a copy of the Registered Return Receipt that I have showing that they received it in their payoff department.



The follow up letter asks them to answer whether they are going to use the CPN to discharge the alleged debt, or if they have refused it.



I plan on filing a lis pendens sometime soon and copying them on it just to let them know the gig is up.



The Affidavit of mailing that my friend did was mailed separately and kept the original and just sent the bank a copy to let them know I was covering the bases.



Will keep you posted.



HB

[charlesa6]

Do you behind on your mortgage or stop making payment

after you send the vod and cpn to the morgage company? The morgage company call you for monthly payment due?

[dashboy]

Your verifying you still owe if you keep sending payments!

[Ice]

juststartingout,



It depends on the contracts terms... what the obligations of each party are... what "specifics" are spelled out within the contract.

[juststartingout]

Ice - any hint as to certain terms I should tell them to look for in their contract?



see, I was thinking, like I stated, that a line of credit hasn't been established with my friend's signature - or has it? so where is the debt that needs to be discharged? I am not totally familar with Contract for deed - but it is my understanding that they owner holds the title until the contract is paid in full, right? So there has not been an 'account' set up in my friend's name? My brain is mush and not really saying what i'm trying to get out here. Can anyone read between the lines here and see what I am getting at?



and if they tried to submit a CPN and they were to convince the owner to accept it, and owner wants to know how to redeem it - does the owner just redeem it by endorsing it and submitting it to his/her bank account? IOW - how does the owner get the credit?

[Ice]

This is a sticky one... but here it is:



The contract calls for "performance" of both parties. In this case -- one performs FIRST, then the other. You can use whatever method you like to "pay" (the performance required) ... but BETTER MAKE SURE THE OTHER PARTY GETS HIS $$. If he gets any piece of paper that he cannot exchange for what he believes to be valid "money" then he will not consider himself bound to perform per the contract... and I wouldn't consider him bound either. The point is that he must be able to actually USE whatever is tendered as "payment". It must be an instrument that he can make use of.



I do not believe that there is an "account" -- there is only a "contract" that requires performance by both parties. This is the best I can offer with the details provided.