Home Buying in Las Vegas>Question Details

Michael, Home Buyer in Las Vegas, NV

Help using "Contract For Deed" ie. Owner Carries Existing Mortgage. Need advice from attorney or realtor.

Asked by Michael, Las Vegas, NV Mon Nov 7, 2011

Seller has existing mortgage for $185k. Asking $220k. I am willing to pay out her equity but want to keep existing mortgage. I want to use Contract For Deed or similar arrangement. Seller is in agreement and ready to deal. I am looking to hire a professional attorney or realtor for his/her assistance writing and registering the contract or any other related advice, thank you.

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11
Any work around in place of an arm’s length transaction increases your risk and could end up costing a great deal. There is info in some of the links below that may help keep you out of harm’s way. Good luck,

Info on Rent to Own:
http://www.trulia.com/blog/jimsimms/2011/11/rent_option_or_r…

Credit Repair can be a Crime:
http://www.trulia.com/blog/jimsimms/2011/10/credit_repair_ca…

Down Payment Assistance in Kentucky:
http://www.trulia.com/blog/jimsimms/2011/03/down_payment_ass…

http://www.trulia.com/blog/jimsimms/
0 votes Thank Flag Link Mon Nov 14, 2011
These types of deals are risky because of the potential for big problems if either party defaults. I would instead suggest you find a free and clear property if you looking for owner financing.
0 votes Thank Flag Link Mon Nov 14, 2011
Some of the newer agents in Las Vegas don't remember how in the 1990's this was pretty common practice. There were many lawsuits and many bad things happened so this type of transaction in Las Vegas has in general been stopped. If someone wants to do one, they are either 'very smart and possibly devious' or just ignorant and you as a buyer brought it up. I was licensed in New Mexico for many years and they have embraced this type of transaction. They have Board of Realtor generated boiler-plate contracts, title companies and escrow companies that do these every day and a system that works quite brilliantly. If you'd like to consider New Mexico call Ann Cloud at 505.507.4924. In Nevada most will shy away from the liability and most brokers just will not allow this. As always I am not an attorney and do not give legal advice.
My assumption is that the seller doesn't have enough equity to do a "normal" sale and is looking for someone working without Realtor input or the state you are from does these transactions regularly.
It sounds like you might like to consider an expert Realtor to cover YOUR interests. Besides being a Realtor for 16 years, I was a structural engineer in my prior career so I REALLY look out for your interests. Feel free to give me a call and we can sit down and find you a house where you are not buying the "money pit" and are not being scammed. Kurt 702.656.1818
0 votes Thank Flag Link Thu Nov 10, 2011
As many of the responses show, this is probably not a good idea. While these transactions were popular in the mid 90's (I even used to conduct training classes on how to do them) they more or less went by the wayside due to the costly experiences that both buyers and sellers had. Today there is even more liability and you would most likely have a hard time getting a title company to handle the transaction, You certainly shouldn't attempt to handle it on your own since when they are done correctly they are still quite involved. Good luck!
0 votes Thank Flag Link Tue Nov 8, 2011
Michael, sound like a bad deal to me..
Never go into a transaction without a Realtor, #1 we can pull loan papers on this to see if this is an assumeable loan. I would never buy anyone else property, give them money and yet there name remained on the property no way it;s a big NO NO.. You should be seeing RED FLAGS going up. She either passes this home onto you legally or simply walk away.. It's not worth the headaches that are to follow, believe me with her name on the title still you are going to lose. Find another home, that is free and clear of any strings.. I'd be glad to help you find the right deal give me a call at 702-232-5407 or view my web site at http://www.rosemarielv.net Have a great day, and don't get involved with this deal..

Regards,
Rosemarie Kudo
Relaty ONE Group
Web Reference: http://www.rosemarielv.net
0 votes Thank Flag Link Tue Nov 8, 2011
I have a real estate attorney and a Mortgage broker and I am a realtor. I think you need all 3 on this deal to make sure you get it right. Please call me John Peters at 823-8980.
0 votes Thank Flag Link Tue Nov 8, 2011
MY ADVICE IS TO STAY AWAY FROM IT!!! This is an agreement that will end badly for both of you. She would be on the mortgage. If at some point in her life she files for bankruptcy, your home goes with it. If she passes away, you lose your equity and the home reverts to her heirs even though you have paid on it. Additionally, most mortgages in the last 10 years or thereabouts cannot be assumed. So, I don't understand how you intend to have this done. The bank would have to agree to it. Since there is a clause in most mortgages that there can be NO assumptions, the bank wouldn't agree to it. Before you go any further for either one of you, have her read the original mortgage documents and see if this can even be done. Myra Gouger / Realty ONEGroup / 702-858-9311 / myra_gouger@yahoo.com / http://www.nevadahomesdirect.com
0 votes Thank Flag Link Mon Nov 7, 2011
Only use VERY EXPERIENCED realest attorney with over 15 years real estate experience in Nevada. Laws change for this type of transaction and can be filled with pitfalls.
0 votes Thank Flag Link Mon Nov 7, 2011
Hi Michael,

I will have to make a couple of assumptions since you are asking for a realtor and/or an attorney.
1) this is a for sale by owner (FSBO).
2) neither of you are using a Realtor®

I have been involved in several Owner Will Carry transactions….
You must be careful to not get burned, this needs to be set up just right.

Sounds like you need to hire a Realtor®
I would not mind meeting with you to further discuss.

Rick Ream - Realtor ®
Coldwell Banker, Wardley Real Estate
7670 W. Lake Mead Blvd #100
Las Vegas, NV 89128
702-528-5207
RickReam1@GMail.com
0 votes Thank Flag Link Mon Nov 7, 2011
Hi Michael,..
The first step would be to see if the mortgage is actually assumable.
Also,.....many home owners are upside down right now.
You want to make sure that you are getting a good deal.
What is the address on this property...?
I can do a little research for you.

Feel free to contact me with questions. or send your contact info to me with a convenient time to call.

Sincerely,
Hank Lauzon III

Exit Las Vegas Realty Center
6600 W. Charleston #119
Las Vegas, Nv 89146

Cell 702-449-0899

Office 702-949-2409

Fax 702-543-6844

Web : HanksLVRealestate.com

Email HankLVRealestate@aol.com
0 votes Thank Flag Link Mon Nov 7, 2011
e-mail Helene Moore at
helenem@windermere.com
I've worked with her and she is sharp as a tack and sweet as honey.
She's there in Vegas.

Good luck and may God bless
0 votes Thank Flag Link Mon Nov 7, 2011
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