Home Selling in 55110>Question Details

thinrichs, Home Buyer in Saint Paul, MN

I currently have a FHA mortgage and want to sell my home. Can I sell it on a Contract for Deed?

Asked by thinrichs, Saint Paul, MN Tue Sep 25, 2012

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7
Susan Hofflander’s answer
Yes, I agree with all of the agents here. You should seek professional legal advice because, most likely, there will be adverse consequences to selling on a contract. Once the title transfers, many lenders want ALL of their money! So, if you sell on a contract, your title WILL transfer. And, if the lender knows that, and you have a "due on sale", you will have to pay your whole mortgage off.

Does this make sense to you, thinrichs??? If you need more info, give me a call or send me a private message.

Good luck~
0 votes Thank Flag Link Wed Oct 10, 2012
You always want to seek legal advice but you can get a lot of information on contract for deeds and cd listings here. http://www.mnlakeplace.com
0 votes Thank Flag Link Sun Nov 17, 2013
seek advice from an attorney. contract for deed sale will trigger due-on-sale clause on your mortgage which makes a lot buyers nervous. sometimes sellers go around it by doing a lease option/rent to own arrangement instead, but you have to be careful doing that also
0 votes Thank Flag Link Sun Nov 17, 2013
thinrichs,

The answer is always "yes" when you ask a "can I" question. The question really is what will happen if you do sell your house on a C4D. I try not to give this answer in this forum because I hate it, but you really need to talk to an attorney about what your options are. Check out Steve Nash http://www.Nash-Law.com. He teachs classes for real estate agents about C4D and the ramifications of what could happen or not happen and where the risks are. It would be worth the time and money to get all of the facts from an attorney on this.

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Thu Sep 27, 2012
What Liz is referring to is a "due on sale clause" (feel free to google it). With FHA mortgages it is 99% given that you will have that problem. Also, if you are upside down on the home you can't go land contract. I know you did not say it I have just had many questions like this from people before.

Other than that I would need more information to help you out...mainly why do you want to go contract for deed? If I know the why I can maybe give you some options. Just contact me directly on Trulia.

Good Luck!

~Chris
0 votes Thank Flag Link Wed Sep 26, 2012
Review your mortgage note Usually sale of a home by any method will result in the lender calling the mortgage due as of the date of closing. FHA mortgages may be assumable; that will be in your note as well. If you need help, call your lender. If the mortgage is assumable, that would probably be your best way to sell and often extremely appealing to the buyer. Some lenders will also give you some concessions such as lowering the mortgage rate if the buyer finances with the lender. CHeck it out before you cause a problem for yourself. Most propeties that are sold contract for deed do not have a mortgage, they are owned free and clear. If a loan is assumable, a small contract for deed paid directly to the seller, plus a cash downpayment, may be used to cover any gap between the sale price and the assumable mortgage. Just be sure you have all the factd pertinent to you, the buyer, the specifics of your house, etc. Liz, 612-986-4105
0 votes Thank Flag Link Tue Sep 25, 2012
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