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suchabrat30 · Jun 26, 2007, 06:33 AM

Trying to follow to "good to be true" rule here-but long story short, I have had a home on the market in TX for 9 months(2 yr old home)I was contacted by a man who says he buys homes. Come to find out, I transfer everything(warrenty deed to trustee? ) to him, and he pays the mortgage until he sells the property? Anyone heard of this??
Confused-first time seller in a pinch!:confused:

Squiffy · Jun 26, 2007, 06:35 AM

You mean you give him the deeds to the house but he doesn't pay you until he sells the house? That sounds like a scam to me. What guarantee do you have he would sell it ever?

LisaB4657 · Jun 26, 2007, 06:38 AM

Way bad idea. Even if the deed is being held by a trustee until the sale of the house, you are still responsible for the payment of the loan. What if he stops paying it? The lender comes after you, not him. And if he stops paying it, and you start paying it while trying to sell it, how easy will it be for you to get the deed back from the trustee once you finally find a buyer?

Stay away from this one. The house will sell sooner or later. Lower the price if necessary.

ScottGem · Jun 26, 2007, 07:00 AM

I hate to disagree with Lisa, but I'm not so sure this is such a bad idea. I think you need to make sure your interests are protected, but if they are this may be to your advantage. I would make sure of the following:

1) There is an agreed upon sale price. Buyer agrees, in writing, to pay you x amount. I would even include an escalator clause to raise the price after a period.
2) That you have it in writing that, if the buyer defaults on the mortgage payments, that the trustee releases the deed back to you. What constitutes default would need to be specified in the contract.
3) The buyer agrees to pay all legal costs that might be incurred as a result of this deal.
4) That you get references from other people this guy has tried this with.

If everything is nailed down in writing and this guy has a good reputation, it can be a good deal for both of you. You get out of paying for the house and he has a chance to make a greater profit by holding the house for a time. The main drawback to you is that you have to wait to get the full purchase price.