Re: HELP! - Posted by dallas
Posted by dallas on March 27, 2001 at 20:18:04:
Mikes comments are on the money for one issue but there is a FAR MORE IMPORTANT ONE that you need to look at.
When you put this person on title they have EQUAL ownership of the property and can take out a loan without your knowing it.
At this point you have nothing that says they can QUALIFY for loan to pay you off. Have you looked at their credit or received ANYTHING that says they can get a loan?
Most lenders require 12 months ownership before they will provide a loan based on appraised value. There are a FEW that will do a loan with 6 months time of ownership. If he is buying from you his address will be the key that says he has lived there for 6 months unless he does not tell the truth on the application but a verification of mortgage with yoru lender will confirm this.
If you sell to him under a contract for deed or land contract you DO NOT have to place him on title, that is the purpose of theses deals. Teh say in essence "I’m sellign to you but I’m not givign you title UNTIL you pay me off. You can record the land contract but he does not have to be placed on title.
If you gutt tells you not to trust someone in the deal FOLLOW IT, it is likely RIGHT!!
As far as the money goes reqiire that he make the largest down payment possible with monthly payments in a contract for deed or LEASE PURCHASE with the clause that the $$ is forfited if he does not get a loan.
YOU NEED A “REAL ESTATE” ATTORNEY or an experienced investor to protect YOUR INTERESTS. Just as there are a lot of simply things that you write into computer code to build a web site, there are A LOT of little greek sounding clauses that can be written into a contract that may mean nothing to you but will cause you a lot of problems.
I am a mortgage banker and investor. If I can help, contact me.
When you sell to him