contract for deed
Question Details: I have a renter that would like to do a contract 4 deed,5yrs with 20k down payment.I'm selling the house for 229k or rent it out.How do I put a price on the house for 2or 3 yrs down the road.Til it gets refi'ed?Who makes the morgage payments,owner or renter?
Real Estate Law Answers
The price you put on the house should be the sale price of $229k; not what you think the house will be worth when the contract is paid off. The date of sale would be the date of the contract. You hold the title to the property as security for payment of the contract.
The contract can provide that you or the buyer make the payments on the mortgage. You may want to make the payments from what the buyer pays on the contract to protect yourself if the buyer decides not to make the payments.
NOTE: If your mortgage has a "due on sale clause" that prohibits you from selling the property without paying off the mortgage or without the lender's consent and you do not comply, it would give the mortgage lender the right to call in the loan and require immediate payment in full of the mortgage.
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