Posted by Anne-ND on March 27, 2001 at 19:18:57:
Sounds like too much money for you to be feeling insecure about the buyer and the contract. It’ll be worth the money.
Anne
Ok, here is the deal… - Posted by Brett
Posted by Brett on March 27, 2001 at 14:50:12:
This site is great, I want to thank all of you before hand that might respond to this post. I appreciate it. This is my first deal. My family and I are moving to another state. We have decide to sell our house creatively. I have a new friend here that does foreclosures and has done a deal or two like this. He kind of set it up. The deal is, we are going to carry contract for about 6 months. The house is going for $155,000, I owe about $146,800. $5000 down and $1100 a month. My payments are $974 month. In 6 months he is going to take a second out and pay me off. I have control of the contract. If he defaults, I take him off the title right then. He looses his down. Is there anything that I am missing here? What should I do about insurance? Also what if he defaults and I do have to take him off the title? How long before he has to get out? What are the laws? I am AZ. Does this sound like a decent deal, or am I getting taken to the cleaners? Your expertise will be greatly appreciated.
On another note, I had a discussion with my dad today, and he is sour about RE because he had a renter 20 years ago that they had to wait 4 months to evict. How fast can you get someone out on eviction for a rental? This was in Utah. I would appreciate any answers. Thanks, you are all the best!
Re: Ok, here is the deal… - Posted by dewCO
Posted by dewCO on March 28, 2001 at 14:27:44:
Brett–it doesn’t seem like you have a firm enough grasp of what is going on. Why not just sell the house, what do you gain by waiting 6 mos? Sounds to me like you really need to have an attorney look over the propsed paperwork before you sign anything. Yes, to me it sounds like you will have a chance of being taken to the cleaners.
Ok, here shouldn’t be the deal… - Posted by Bud Branstetter
Posted by Bud Branstetter on March 27, 2001 at 23:50:48:
I’m not sure you will understand this. When he talks about subject to he means that your existing loan will stay in place. No conventional lender will give him a loan to cash you out. They would not be able to get mortgagee title insurance because it is a violation of the lenders agreements to sell without him qualifying. Yes, things like land trusts will hide the issue or Pactrusts will avoid the issue but he would have to get a private lender. An assumption or total refinance is the only thing that will get the loan out of your name.
If a contract for deed is used he will have equitable title. He could still involve you in his legal entanglements if something happened. There are ways to protect yourself but that what these courses are for. The experience does help.
Re: Ok, here is the deal… - Posted by Cliff_DC
Posted by Cliff_DC on March 27, 2001 at 15:44:40:
Brett, when it comes to R.E, “business is business” and “new friend” just doesn’t sound right to me. I’d prefer to call him an enlightened “buyer” and buyer he is. From what you’ve povided it seems like he’s purchasing the property subject to the under lying deed of trust or security instrument. I hope its assumable or you’ll still have some downside risk on the mortgage if he defaults. AZ is hottt… I mean the market is because my son lives there and the chances of that happening is reduced somewhat if he performs as he says he will but he’s only required to do whats on the four corners of your contract. Another thought is that since you’ll still be on the under lying note on the house you’re selling, you may have to be alittle creative your self on your next house purchase. That debt is showing up on your credit report until that loan is paid off and you’re released. Me, I’m a novice, but I try to be very careful when the downside is on my side.
Good Luck and stay motivated but watch your back,
Cliff
Re: Ok, here is the deal… - Posted by Brett
Posted by Brett on March 27, 2001 at 15:52:35:
Thanks for replying by the way. Sorry, I forgot to mention, my new freind is a neighbor that does foreclosures. They buyer is a friend of his.
I was wondering if you would explain a bit more about this “subject to the under lying deed of trust or security instrument. I hope its assumable or you’ll still have some downside risk on the mortgage if he defaults” That you mention above. Nothing has been signed yet, should I back out? Is this a sour deal? I don’t want to get screwed. Please help more! Thanks!
Brett