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Property For Sale By Owner - Real Estate Question.
Anonymous3 views2 answers
I have property for sale $40,000. I have an interested buyer, but he says he only has $29k which is really low for me to accept. An agent is listing the property. Is there any way the buyer can submit the $29k at closing, and still owe the balance in payments? This way the property would remain in my name until the balance is paid in full. Is there any way the realtor and escrow could write this into the contract? I am trying to find any viable options since this sale is cash only, and could be hard pressed to find another cash buyer. In other words, is it possible for the escrow company to hold the deed/title to the property until I sign off that the buyer has paid off the balance in full. thank-you
If you own the property in fee simple and no liens, you could sell the property on a "Land Contract" or "Contract to Buy or Sell Land", which essentially make you the bank. The buyer pays you his $29K down and you finance the $11K balance over a time at payments you can agree on. If you have a lien on the property, (you owe the bank for the property) you should read the mortgage document very carefully and seaarch for a "due on sale" clause. This clause would allow the bank to call the note due when they learned of your sale to someone else. "Creative Financing" is something every real estate agent worth their salt know about and also knows how to do it. Consult with you agent and they can direct you to a lawyer who can draft the documents you need.
Brian Michael CloudDebt Collection AttorneyBirmingham, AL ·
Yes, you could structure the deal that way with a note and mortgage where you would hold the mortgage until paid in full. That way you would sell the property and then become the lender. You could also look at a lease with an option where the buyer could lease the property and then when the amount to purchase the property has been raised, then elect the option to purchase the property. It usually involves a down payment with monthly lease s and you could elect to give the buyer credit towards the purchase price for these monthly lease payments.
