Posted by Bill (WI) on May 11, 2007 at 12:29:30:
Thanks
He has medical problems and claims the title owner is a good friend, therefore will help him out of his obligation. I thought of the sames things, if he needs some cash why not just refi or why not the title owner not just take it back. I agree it seems a little strange, and I will proceed cautiosly. THanks again.
assigning land contract - Posted by Bill (WI)
Posted by Bill (WI) on May 11, 2007 at 08:24:47:
I am in contact with a seller who owns on duplex on a land contract. Good terms. 6 percent interest, 30 years. Has some equity from payments and appreciation. Talked for a while and he said he would assign the land contract to me if he could get $10,000 out of it. I could give him the 10k but I dont know how one can take over a land contract, if its even possible. He told me the seller who sold to him is a close friend and wouldnt mind me taking over if it helped him get out of it. He even said his friend may reduce the interest rate a little to make it work. Barring the actual numbers, which are fine, can I make this work if both the seller and land contract grantor are both in agreement? Besides some title or attorney fees to make the switch, it could be a cheap deal for me to get into.
Re: assigning land contract - Posted by BTI
Posted by BTI on May 11, 2007 at 13:01:48:
Bill
What do you intend to do with the property, is this going to be a buy and hold?
I personally don’t like land contracts and would rather take the deed with seller financing and have the the land contract buyer take his $10K on a short term note. Plus where is he going to live, maybe deduct his rent from note.
No, I’m not giving this a lot of thought, to short on facts, just suggesting you look at it maybe from a different angle.
BTI
Yes, it can work that way… - Posted by JT-IN
Posted by JT-IN on May 11, 2007 at 12:21:13:
Bill:
Either an assignment or a whole new contract for deed from the title holder. You can pay the Vendee (buyer in the LC deal) the amount agreed upon, and he can either assign the existing deal or cancel and re-issue a new one to you. Make sure any payment is done simultaneous to new docs, not before.
The only thought here is, what would be the upside for the Vendor (seller in the LC deal), to actually re-write the deal, lower the interest rate, etc…? Doesn’t sound like something that usually happens, without a procuring cause; like $$$ to seller. I would want to fully understand the reason why the Vendor is being so charitable to the Vendee and the new potential Vendee. Maybe he is flush with cash and just trying to help out a friend… but those kind of situations are rare. Be sure you know up front.
JT-IN