Chris Ann- Also know as a land contract and not much used due to acceleration clauses anymore.
Rosalie-Sounds like the lady may have been physically intimidated too, as most "banks' don't come to your home to arrange payments. Now I can see why the "bank" would prefer this aoutomatic withdrawal to simply the payment processing, it just seems like that should have been arranged and explained efore closing.
Wayne- That is the thing there was never anything in writing saying that it needed to be deposited that way so she never should have been forced to do this since it is outside of her comfort level. I guess there will always be unreasonable bullies in this world!
Rosalie: Yikes! What a nightmare for your poor friend! I'm hazy on South Dakota real estate, but is your friend able to get a title commitment and have a deed from the sellers held in escrow? Otherwise, if they're unreasonable now, she may run into problems at the end of the contract, too- I wish her good luck!
This is horrible that your friend has to put up with this. I hope things get easier. This is a lesson for everyone.
I'm awfully glad you're not dead, but I wanted to stop by and tell you hello and hope that you are doing well. Let's catch up soon.
I had to read this one twice to understand. I've vaguely heard of these types of deals, but thankfully never dealt with one.