i want ot hold the mortgage myself and have her make payments. but i am not sure how her payments can be applied or not applied to the principle of the mortgage and interest.
2007-01-16 01:40:22 · 5 answers · asked by joe b 1 in Business & Finance ➔ Renting & Real Estate
There are different ways to accomplish similar results.
1. You can sell the property and take back a note secured by the property. The title would transfer and you would not own the place. The buyer would become the owner. You would be a lender like any bank and you would have your loan secured by the property.
2. You can sell on a land contract, a contract for deed or what ever your state calls it. Not all states have such an option. The idea if you sell the economic title to the property but retain legal title. This is a sale and the IRS will treat it as a sale. As you have not delivered legal title you may have more rights when it comes to taking the property back if the buyer does not pay. The rules do vary by state so in some states a land contract does not improve your ability to take the property back compared to number 1 above.
3. You can lease option the property. You remain the owner and they are renting with a specific lease. You have agreed an option to sell and at any point they can exercise the options to become the buyer. You have all the responsibility of a landlord but you also keep hold of the title. Unless they have paid significant option consideration for the option it should be a simple eviction if they fail to pay. At the end of the option they can either buy (and you have to sell as per the option) or they can walk away. In that case you keep the rent, the option consideration and the property. You would then decide if you wanted to put it on the market or not.
SUGGESTION: Do not use a RE agent to create the document. They can not practice law and much of the above would require them to do so. You can use standard forms if you understand what they mean. Otherwise you can get an attorney to create and file the correct forms for the situation you choose.
I have done a number of deals and tend to know a lot about the forms and the process. That said I do not perform the work for others. These deals were ones where I was the principal. An agent is not trained in mortgages and land contracts and the wise ones will not offer legal advice or perform legal services. An agent is licensed to broker real estate and not to draw up contracts. Filling in the blanks on a sales contract is not the same.
2007-01-16 02:34:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Joe,
There are so many ways to have this backfire that I cannot even begin to explain. I'm not saying don't do it, sure do it. But hire a professional real estate agent to just do this paperwork part for you. You'll find someone to help you for a small fee.
Or call the title or escrow company that you are going to use and ask them to set up the paperwork for you.
Do not go this alone!
Be careful, this is a lot of money potentially and can wind up in court for years if it goes sour.
Folks come into the real estate classes all the time trying to sort out what they've gotten into. Like they'll still be able to figure it out once they take a few classes. I've had people burst into tears more than once when I get to a certain section on litigation. It's just too risky to set this up on your own.
An attorney, RE Broker, Title Co, Escrow Co. any of those will help you protect her and yourself.
2007-01-16 01:48:07 · answer #2 · answered by Anonymous · 2⤊ 0⤋
I easily have a chum who exchange into attempting to get property bought in tx. She had a lot of an identical issues. not getting the final concepts, those with concepts not calling returned etc. in case you may cope with to pay for it, it is appropriate to pass there and meet a sturdy actual property legal expert. Get one which will pass after the folk that concealed concepts from you. regrettably to procure caught in the housing crunch. you will probable discover that those people could have under no circumstances gotten the 1st mortgage not to show the 2nd. They have been under water before they offered your very own residence. Its referred to as sub-mortgage lending and capacity giving somebody the possibility to bury themselves deeper in dept than they already have been. i'm particularly sorry on your loss. in some unspecified time sooner or later it is precious to to offload the completed element and count variety it as a lesson found out. green is a robust shade.
2016-12-16 05:56:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Do a lease purchase
Best Regards,
Jossi J Edwards
http://jossiedwards.point2homes.biz
2007-01-16 01:51:00 · answer #4 · answered by edwarjd 3 · 0⤊ 0⤋
Do a land contract...which is a recordable instrument.
2007-01-16 01:47:11 · answer #5 · answered by boston857 5 · 0⤊ 0⤋