Re: Taking a Contract for Deed Subject To? - Posted by JPiper
Posted by JPiper on December 22, 1998 at 24:27:55:
Here?s some questions that I would want the answers to before I would even begin to think about doing this.
How is this land contract set up with between the original owner and the new seller? Is it recorded, or a memorandum recorded? Is there a deed held in escrow? Is there an underlying loan on the property? Is this loan current? Is there a collection account that receives payment from your seller and makes the payment on the underlying loan? Have you done a preliminary title search?
Is it really possible to do a ?subject to? assumption of a land contract? I?ll leave this to the legal experts, but I will point out that if the deal was originally set up with a warranty deed executed and held in escrow, that deed is not made out to you. So it would seem to me that your ability to do a ?subject to? assumption is somewhat tenuous. You?re going to need to keep this seller in the loop so that he will execute a simultaneous closing if necessary. Keep in mind that title issues might exist regarding the original owner AND this interim seller.
I would take a cold shower, a few deep breathes, and then contact my lawyer to put together an agreement. Better yet, I would hope there is one big pile of money waiting for you at the end of this, or it isn?t worth it.