What a great site for information, I hope that others don't mind giving me their insight on our situation... I have spoken with my attorney and gotten his opinion, but like everything there are 3 ways usually to do one thing.

We bought a house 3 years ago from friends of my inlaws with a Contract for Deed, the contract was for 30yr financing, paid 15k down, etc. The previous owners (and deed holder) also have a note on the house to their Bank, therefore we make the payment directly to the bank for our protection.

Here is my delima, we have found a new house we are currently buying, when going through the process of selling my current house what does anyone think would be the best way to handle it? If I get a loan to pay off the contract for Deed, that will cost closing and title fees, that I will then also be paying on my new home..

This is the scenario I was thinking of taking, please tell me if this seems to be the best route... The Deed Holders of my current home are easy to work with and friends basically... do I hire a realtor and basically play middle man for the Deed Holder, having all of the documents drawn up in their names, have them sign the Contract offers, etc... then when we agree with a buyer, have them actually close with the Deed Holders with us present... then the Deed Holder would in turn pay us our profit... I'm thinking this might be the best way to save doing double title work and fees...

I'm looking for any other input someone may have to offer to make this a smooth transaction, and appreciate it totally!

Bumping this up in hope of some advice! Thanks!

This is how I do it, ( or did it back in the day) you have a contract for deed, so basically they have to sell you the home when you do everything required. So you have to see first is there early payoff penalty, and the such. You also need to know if the person you are buyingit from has a lien or not, and what are their terms for early payoff also, It can cost 1000's of extra costs for early payoff penalties.

But at the closing everyone has to be there, it is a "legal" nightmare of sorts, so expect almost double closing costs, but it is done all the time.

But your plan should work, it may scare a buyer or two away who do not understand but should not be an issue.

Thank you Chuck, I have read some of your other posts the other day when I found the site, and it's obvious you know the business... Luckily there are no penalties for early payoff for myself or the deed holder... I just needed another confirmation from someone that knows the industry... And you are exactly right about it scaring off buyers, that is one of the biggest things I'm worried about... we weren't expecting to move from this house until the 11 yr old graduated.. and had planned on refinancing before then.. But things change! Thank you for your response and experience.

Sorry to harp on that, but that one just caught me, I called and got a loan balance, and when I got their final sheet of payoff, it was almost 3000 dollars more than the outstanding balance, sue to early payoff pentalties, and other document fees that were hiden in the fine print.

The one thing I may suggest is that you get an additional agreement to your contract for deed, about the sell of the property, let the actual deeded owner list it with the real estate but name you as a representitive or as better yet a limited power of attorney over just that property.
That way the contract for deed does not have to be an issue in it.

Most of mine I am the seller more than the buyer, ( although I do have one now I am buying on a contract,

Chuck's expertise here notwithstanding, you do NOT own this house so you cannot sell it.

Depending on the wording of the contract, you might be able to sell the contract, but not the house. You CAN act as an agent for the owner in finding a buyer, but that buyer would need to purchase the house from the actual owner, though with your permission, since your contract represents an encumbrance on the house.

I think you NEED to draw up an agreement with the owners whereby they give you permision to act for them in selling the house and how much of the proceeds of any sale will go to you for releasing them from the contract.