Does anyone have experience buying a home using contract for deed? Was it a big headache? Does anyone know if there are any websites for this? I can't find any homes near where I live that are willing to do contract for deed. Any tips?
2006-09-21 03:31:23 · 4 answers · asked by passionite21 1 in Business & Finance ➔ Renting & Real Estate
This is R I S K Y!! The property does not get in you name until you fulfill the contract terms., What if there is a loan on the property and the seller quits paying it, yet you keep paying them,? You're out and probably can not collect from the seller. Then you're also out court costs.
Better to do a clean sale, and if the seller will carry the note that is OK but a clean sale not a land contract. I fear people answering herein are clueless in the terms true meaning.
2006-09-23 18:27:43 · answer #1 · answered by tnbroker1 3 · 0⤊ 0⤋
A "Contract for deed" is a fabulous option if you want to keep costs minimal and the seller wants to make some money too.
You simply are paying the seller instead of a banker each month. Do not think you can stiff the seller either... like a bank they can come in and boot you out for not paying. Be a decent human being and pay your bills !!
A contract for deed can get you a cheaper interest rate as well if the seller is willing. I have done this with a seller... He shot me a better deal than the bank and I jumped at it. He knew I was trustworthy enough to do this with.
We set the mortgage up for a 30 year payment plan with a 5 year balloon payment, meaning I kept the payments low $ $ $ $ for calculating it out over 30 years but in 5 years he had the option of asking for all his money.
He wanted some cash after those 5 years so I paid him off. We both went our separate ways HAPPY !
2006-09-21 04:55:11 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
Buying a home on contract normally means the seller is extending the financing. In a healthy sales market, this is not as attractive to a seller who may be cashed out by a buyer who obtains mortgage financing.
Some sellers will sell by contract to avoid the necessity of making repairs to a home that may not qualify for mortgage financing without them. A contract is also a way to buy a home whose zoning may have changed and so could not be rebuilt as a single family home were it destroyed by an accident.
Contracts are simply an agreement to buy and sell between a buyer and seller. The terms of the contract determine each party's rights and responsibilities so it is imperative that the contract be complete and well thought out in order to avoid the possibility of future disagreements or unintentional defaults.
2006-09-21 03:43:56 · answer #3 · answered by mazziatplay 5 · 0⤊ 1⤋
This is not a smart thing to do. Consult a lawyer or go to your bank for more information.
2006-09-21 04:15:51 · answer #4 · answered by Florida Girl 3 · 1⤊ 0⤋