we are thinking of buying a house contract for deed in wisconsin and have a few questions first the seller is talking about a 2 yr agreement with a balloon, but if everything goes good he said he would extend it longer if we are making payments on time. he also said we would pay the property taxes which are 3100.00 a yr, so is the house in our name or his ,can he kick us out even if we are making our payments but decides to sell it outright, how does it all work do we need a lawyer before we sign anything, what are the laws of this do we have any rights to the house at tax time do we claim interest we paid on it just really confused it sounds to good to be true. the house is 2yrs old and the last people he told us just left and did a lot if damages which he is fixing,the house sold for 189,900 last time with a unfinished basement & garage he is fixing that all up and repainting everything and selling it for 145,000, with no appliacnces and the flooring needs to be replaced. i'm just a little worried that something bad we happen and we will have to move out. we own a trailer house and he would take that as our downpayment is that a good idea? do we get any money back if we decide we dont want to do it any more,someone told me that you should have a clause in ther saying if anything happens and you want ouy or he does you get back your principil you paid is that correct or not, hope to get some answers soon, we will know in a few days a monthly price plus property tax, HELP !!!!!!!

Fr_Chuck

If everything goes good, if he feels like it, he will extend, but if he does not feel like it, he does not have to, so what will change in the next two years that will allow you to get a loan then, that is stoping you from getting the loan now ???? So if you can't pay the balloon note at the end, you get kicked out and loose everything you paid in.

The house is always in his name untill you buy it, a contract for deed is just that, a contract (written agreement) for him to sell you the house at some future time when you finish paying him in full.

You can file the contract at the court house, so as long as you follow each and every part of the contract he can not kick you out. But if you defaut in any agreement he can kidk you out. Also does he have a loan on the property ?

If you decide you don't want the house you can leave but you don't get any money back, he has the trailer and you have gotten to leave there.

Well it would be great to have a clause like that in it, but he would laugh at you, as anyone would if you asked for it in a contact for deed.

In many ( but not all) contracts for deed are the highest of high risk house buys, the seller is selling to someone that no one else would loan money to for a home. He makes most of his money by hoping you can't pay, so he kicks you out, and sells it again and again, each time getting a good down payment, or at the end of two years you can't get a loan and he just takes it all back.

So this is what normally happens, you pay a large down payment, in your case your mobile home. You pay him a fee ( and he normally pays the taxes so he knows they are paid, and also since the deed is still in his name) he may even have a loan on the home that he is paying.

In all of mine if you are ever even late in making a payment the contract changes to a rental agreement, ( but this is not always the case)

So as long as you are sure in 2 years you can get a loan, and as long as you are sure for 2 years you can make every payment on time no matter what, then great, if not it is not a good deal.