Is it a hopeless situation to begin with?
How hard is it to foreclose if someone defaults?
2007-12-06 13:55:26 · 6 answers · asked by SQD 2 in Business & Finance ➔ Renting & Real Estate
Do a Land Contract. Make sure you don't give them a deed to it until the loan is paid in full. In other words they are basically renting to own.
If they default you go through a simple eviction not a foreclosure.
Call an attorney or paralegal and ask them how much they would charge to type one up.
Basically the buyer would make payments to you and you would forward payments to lender. If they default its easier to get them out.
If they pay off the loan or go to sell they get the equity.
2007-12-06 14:01:42 · answer #1 · answered by Anonymous · 1⤊ 0⤋
We've purchased two houses with the seller financing. It is a great deal for both parties. Don't give up on the idea.
In one case, I as the buyer (and a financial person) did the amortization and paperwork. Pretty minor stuff. Basically said if I default, you get the house back. Laws have changed A LOT since then though. And, we closed with a lawyer when we got financing and paid off the seller a few years later, and I was glad we used a lawyer. The sellers thought we were supposed to pay them all the unearned interest for the remainder of the term of the loan !! :-0 So glad we didn't just pay off with cash, but had a lawyer in the room and a bank to explain the seller his folly.
The 2nd time, we used the paperwork from the seller. Just a basic agreement they had gotten cheaply somewhere. We later had a lawyer look at it and he laughed.. Said nothing there was enforceable, and the seller should have used a real estate attorney. It was in our favor; I had known that so hadn't minded signing it - I didn't plan to default.
So, the moral of the story. Find yourself a good real estate attorney to make sure all the t's are crossed and i's are dotted and you will be fine. You will have the same rights as a bank.
Best to you!
2007-12-06 14:03:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
All you have to do is make sure a qualified real estate attorney draws up the note and the deed of trust...you'll have the same rights as any bank to foreclose.
2007-12-06 13:58:16 · answer #3 · answered by Expert8675309 7 · 2⤊ 0⤋
The problem with seller financing is that you, the seller, are going to draw buyers who don't qualify for conventional financing for any one of a number of reasons. I would agree with the others in offering a land contract over seller financing.
And always bear in mind that, if these folks trash your house and you need to repossess it, all you can do is attempt to sue to collect damages.
Do your best to require credit checks on these folks to see 'what they're made of'.
2007-12-06 14:26:32 · answer #4 · answered by acermill 7 · 1⤊ 1⤋
in case you are able to desire to be sure you are trying this proper, you beneficial would not be asking right here. I even have not at all heard the term "hollow" contingency, I have no theory what this is. in case you opt to guard your self and this investment, you will enlist the centers of a professional to attraction to up the settlement. Any settlement you get for loose is relatively easily worth the fee you paid.
2016-10-19 11:41:33 · answer #5 · answered by gilboy 4 · 0⤊ 0⤋
Don't do it !
2007-12-06 13:59:16 · answer #6 · answered by tina 5 · 0⤊ 1⤋