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    StewartAcqu's Avatar
    StewartAcqu Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Aug 16, 2007, 12:42 PM
    Sticking out a Contract for Deed
    Hello all,

    I bought a house on contract for deed in Kansas a year ago. 59500 2000 down at 7% interest. The full term is 7 years I have 6 to go. Due to a divorce I do have bad credit and a Foreclosure on my previous house with my Ex-wife.

    The terms of our agreement was that I would re finace with in a year. If I can not re-finace (which I have not been able to) then the interest rate moves up to 8% for the rest of the term.

    Because of the short term the payment is high. $950 a month which includes the insurance and taxes.

    My question is should I just pay out the Contract or actively look to re-finace? To a longer term say 15 years. Looking at the amortization chart I like how much is coming of the principal in a short amount of time. My only scare is that one time I did get close to being 30 days late which is stated that he can reposess the house if that happens. I know by state law this is not possible without a right to cure but it is still scary.

    I also like the idea of re-finacing and reselling the house on a long term contract for deed. I believe that there are allot of people in my position ( Above average pay, bad credit) that I could sell this house and any others I would buy to.

    I have been reading this site for a while and hope one day I can contribute!
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Aug 16, 2007, 12:46 PM
    I would continue to look for financing, but continue with the contract in the meantime. If you don't you lose all your equity.
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