I have a friend who offered to buy my house, to help me avoid bankruptcy, then sell it back to me contract for deed all in the same transaction. Is that legal? If yes, what needs to be done to guarantee I get my house back, and my friend is not stuck with it?

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Originally Posted by nayesha

I have a friend who offered to buy my house, to help me avoid bankruptcy, then sell it back to me contract for deed all in the same transaction. Is that legal? If yes, what needs to be done to guarantee I get my house back, and my friend is not stuck with it?

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First off, you need to contact an attorney regarding this type of transaction. Second, if you are already in bankruptcy, what makes you think you will be able to pay for the house on another loan? Talk to your banker and see if you can work out some better financing arrangements before you jump into this type of situation.

Hello nay:

We need more information in order to give you a good answer.

Certainly, if your friend is going to buy it, he can do anything he wants with it after he buys it. He can rent it to you, sell it to you on contract or a lease option or lots of different things.

However, if he's going to buy your house with a mortgage, then he's NOT going to be able to do anything he likes at all. Selling it to you on a contract would be one of those things he COULDN'T do.

excon