I was wondering, can a person who has an outstanding mortgage, sell that property to someone else on a Contract for Deed? If he can, doesn't he have to let the buyers know he has an outstanding loan? Also, in a contract for deed, does there have to be a SPECIFIC, time frame to get the contract paid off in full? Anyone wanting to chat about this please let me know, I have a lot of questions on a contract for deed and need some answers! Thanks

Fr_Chuck

Yes you can sell a property on contract for deed if there is mortage, a contract for deed does not actually transfer any deed or ownership untill it is paid off. And the idea is to pay the mortage off with the payments from this contract and a profit also.

A contract for deed is very specific, it has exactly how much is to be paid each month, and how many payments have to be made and the such.
The contract nromally converts to a month to monty rental if the contract ever goes into default, or by terms in the contract.

kdessinger

skohn,

Yes a contract can legally be placed on a property before the original mortgage is paid off. A contract by nature is just a legal document (bound by currency know as earnest money) stating that one person is going to buy a product from another person.

Your contract will have a closing date included on it. All mortgages, liens, back payments, penalties, and taxes will need to be paid in full on that date.

These type of contracts are generally issued by a real estate investor using creative strategies. If you find a good investor then everyone should be winning at the end of closing.

Each contract is different. It all depends on what strategy the buyer is going to use.

Do you have any more information? What is the situation?