Check out some similar questions!

richandmary · Feb 13, 2011, 06:56 PM

Problems we might encounter?
Is this a good and safe way to handle the sale?

Fr_Chuck · Feb 13, 2011, 07:27 PM

1. have an attorney write the contract
2. be clear and exact the terms of default, normally it becomes a rental on a month to month and they lose any deposit or down payment.
3. Get a large down payment, I would never sell one without 10 percent at least.
*** most of mine end up with them leaving, carpet ruined, holes in walls, windows broken, fridge , dishwasher all gone, I have had a couple where the copper was pulled from the walls.

So always assume the worst.

Next drive by the property to keep a eye on it on a regular basis.

Next you don't run a charity, you will hear some real sob stories and will hear why they can't pay this or that, or can't keep it mowed and so on. Treat this as a business.

If you have a mortgage, be able to pay without them paying you, it is possible that you will go months without getting money from them, so be able to pay any mortgage on the property.

And expect to take it back, most people buy them under contract because they don't have credit to buy it with a regular loan ( not always the case , but often)

excon · Feb 13, 2011, 08:05 PM

Originally Posted by richandmary

Is this a good and safe way to handle the sale?

Hello r:

If you're doing this to SELL the house, this is NOT a good and safe way to do it. If you're doing this to go into the real estate business, then it's an excellent way to do that.

excon

Ilike · Feb 17, 2011, 11:09 PM

My understanding is that you are doing a "Contract for Deed" which differs from a "Lease with an Option to Buy" and a "Seller Finance". Most "Contract for Deeds" never work out for the Buyer because Buyer default is so easy (e.g. late payment causes a default, smoking causes a default, pets cause a default, or whatever other terms you would like to use). What is nice about these is that you remain on title. Really all it is a glorified lease with a Buyer that only hopes to Buy. What state are you in? Depending on what state you are in you can use either an Attorney or an experienced REALTOR. Your biggest risk is that that 1) The Tenant will not pay; 2) You will have to evict; & 3) Your place will be trashed. Most of this can be avoided by doing a complete and thorough background check. Good luck!