Posted by bruce berger on April 22, 2006 at 20:21:00:
Tony: We have used a deed-in-lieu-of-foreclosure which works very well in NC. Not sure about TX. MUST have a qualified RE attorney draft it! I also agree with you that a L/O is a simple way to avoid foreclosure if he chooses not to pursue pure “owner financing” on an installment contract.Again, not sure about the recent law change there but I seem to recall it adversely affected L/O.
Best, Bruce.
How to StructureOwner Finance Deal on DW w/land - Posted by DJ (TX)
Posted by DJ (TX) on April 22, 2006 at 12:08:20:
I have a '98 3/2 doublewide on 3/4 acre lot that I rehabbed in Texas. My deal with a cash buyer might fall through, so I’m working on a backup plan to owner finance it for a maximum of 10 years (payments of around $800).
I want to know what the best method is to go about this to ensure that I could easily take back the home in the event that a buyer stops paying. The home and land are registered with the state separately (the home is on a “CLEAN” Statement of Ownership & Location (not a title) and the land in owned free & clear as well.
I want to be able to avoid the 6+ month process of foreclosure if a buyer stops paying. So what’s the best way to protect myself as a seller?
Re: How to StructureOwner Finance Deal on - Posted by Nate-WI
Posted by Nate-WI on April 22, 2006 at 21:36:28:
How bout you just sell the first lien to a note investor so you don’t have to worry about the foreclosure? If you bought it right you could handle the discount in selling the note.
Nate-WI
Re: How to StructureOwner Finance Deal - Posted by Tony Colella
Posted by Tony Colella on April 22, 2006 at 16:50:43:
Sounds like a lease/option or contract for deed type approach although I think TX has recently changed its legislation regarding one or both of those approaches. Check the legal forum archives here as I think Attorney Bill Bronchick made several posts on that topic.
Tony
Re: How to StructureOwner Finance Deal - Posted by DJ (TX)
Posted by DJ (TX) on April 22, 2006 at 21:48:32:
Okay, I scowered the legal archives and succeeded in thoroughly confusing myself. I searched under Contract for Deed, Lease Option (in Texas), even Bronchick. I found a few posts, some of which said lease options are now regular land contracts (requiring foreclosure) and others that said you could still do them.
As for contract for deeds, apparently there are major fines in Texas if you so much as forget to give the buyer a disclosure, survey, etc. But others say it’s easy.
So basically I still don’t know what would be best. Most of those posts have to do with SFR’s, not manufactured homes. Are the rules different for them or less restrictive?
Anyone care to tell me which one they would do (CFR or L/O) or if there is another option I haven’t heard about???
Again both the land and doublewide MH are owned free & clear and I want to sell it owner financed using whatever method would be easiest to get the home back QUICKLY (avoid foreclosure)in the event the buyer stops paying.
Any advice regarding options in Texas would be appreciated.