JPiper, I need your input. Or anyone else. - Posted by Tim Jensen

Posted by Tim Jensen on January 30, 2000 at 13:13:02:


That is why I was going to have him make a QC Deed out to me at the same time I deed it to him.

Then again,you have a good point.

Tim Jensen

JPiper, I need your input. Or anyone else. - Posted by Tim Jensen

Posted by Tim Jensen on January 30, 2000 at 13:05:05:


I am selling a property and need your input.

The buyer wants to buy the place, but in order to get 0 down financing he wants me to deed the house to him then about 3-4 days later he will give me my money.

I am considering doing this, but what I wanted to do was to give him a QC deed and at the same time have him sign another one over to me. Just in case he does not perform. Also, couldn’t he place a lien on the property in the 3-4 days time?

What is your thoughts on this deal. Is this doable? Advisable?


Tim Jensen

Alternative - Posted by Bud Branstetter

Posted by Bud Branstetter on January 30, 2000 at 21:35:24:

Most any lender today wants him to own longer than that before a refi. A year or so ago it was a different story. Unless Ed Garcia knows of someone that is doing it there is something else going on. Like he sells to his partner then forgives the 20% owner carry back. If it were straight up you could do a DOT. You could still do a deed of trust against other property that he owns. I would want title insurance and 60%LTV.

Re: JPiper, I need your input. Or anyone else. - Posted by Jeff Baron (Dallas, TX)

Posted by Jeff Baron (Dallas, TX) on January 30, 2000 at 18:40:20:


You might consider using a trust to accomplish your goal. My thought is to deed the property to a land trust with you as the trustee. You assign the beneficial interest to your buyer (you remain trustee) and include some lien language to reclaim your beneficial interest if the buyer does not perform.

The questions I would have are 1) would the lender consider the borrower’s beneficial interest to be sufficient ownership for a refi? 2) Is there any possibility that the buyer would have sufficient equitable interest to force a foreclosure if he failed to refi (as JPiper cautioned)? I don?t know the answer to these questions, but they should not be that difficult to find. Perhaps JPiper, BillG or BillB will have some comments.

Re: JPiper, I need your input. Or anyone else. - Posted by SCook85

Posted by SCook85 on January 30, 2000 at 17:31:25:

This is a practice that I am going to be doing regularly now. But it is a different scenario then yours. I don’t mind holding the financing.
I am putting people who lack the funds to close on a deal, but can get financing into my homes with no money down. I have a mortgage broker who will be working on refinancing them.
I tend to side with the others on this one and tell you not to do it. In my case I know the exit plan of my buyers. Has your buyer provided you with any proof that he can pull this off?

Happy Investing!


Re: JPiper, I need your input. Or anyone else. - Posted by phil fernandez

Posted by phil fernandez on January 30, 2000 at 15:36:33:


I learned the hard way this past summer about liens of my buyer attaching to the mobile home that I sold him. He paid for about 10 months and then abandoned. I got a bill of sale in lieu of foreclosure from the guy, but guess what. I also got all of his liens.

Don’t do it.

Re: Thanks for the input! - Posted by Tim Jensen

Posted by Tim Jensen on January 30, 2000 at 14:30:34:

Jim, Rom, and Bob,

Thanks for the input. I had reservations about doing the deal this way. It just seemed a little strange. What I am going to do is tell the guy no dice.

Tim Jensen

PS_ I can’t wait to meet some of you at the convention!!!

Here is another reason not to do it - Posted by Bob H

Posted by Bob H on January 30, 2000 at 14:16:17:

If the buyer has any judgments against him, they will automatically attach to the property as soon as the Deed is recorded. Even if he deeds back to you seconds later, you get title encumbered by those liens - JUST DON"T DO IT!

Re: JPiper, I need your input. Or anyone else. - Posted by JPiper

Posted by JPiper on January 30, 2000 at 13:40:25:


Personally I wouldn’t do it. Here’s a scenario. With a contract for deed one of the things that commonly exists is a quit claim deed which is recorded in the event the buyer defaults. The question however with this technique is whether this unreasonably withdraws the buyer’s right to a foreclosure action under the law in the specific state. In this case, a contract doesn’t exist. But what happens if this buyer doesn’t produce the money…but when you record the quit claim he files suit, and holds that you have unreasonable withheld his right to foreclosure, any redemption rights or rights to cure as prescribed in state law?

You might ask why he wants to do it. Maybe there’s a different way to handle it.


Here’s my advise! - Posted by Ron

Posted by Ron on January 30, 2000 at 13:10:35:

You want to wait the 3 or 4 days. Don’t ever under any circumstance deed him the property. Get the money and then deliver the goods.
Common business sense! This guy sounds like a John T Reed Graduate.
We’re smarter than those guys!

For what it’s worth