Posted by Stacy (AZ) on February 16, 2001 at 10:21:37:
First, I don’t see title insurance mentioned anywhere. If it was my deal, I’d get it.
Second, if you are owner financing your buyer, don’t assign the beneficial interest of the trust to him. This gives him ownership! You need protection, since you are on the hook to make the seller’s mortgage payments in this deal. What happens if the buyer stops making payments? How will you get the property back if you’ve simply assigned the bene interest to the buyer?
Sell it with an L/O, a Land Contract, or an AITD so you have legal recourse (eviction, forfeiture, or foreclosure). I prefer the Land Contract route, since I can get more down, and normally a higher monthly payment than an L/O, and in my state I can get the property back quicker than with an AITD.