Home Selling in Omaha>Question Details

Kmercer66, Home Seller in Omaha, NE

can i sell my home on a land contract if i have a mortgage? I live in nebraska.

Asked by Kmercer66, Omaha, NE Fri Jul 2, 2010

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4
I agree with Byron. It's risky. I know someone who had a similar problem and it cost him about $30,000.
You are depending on your buyer to act honorably and responsibly.
Dean
0 votes Thank Flag Link Sun Jul 4, 2010
As long as your contract does not specify against doing so you can. But make sure you have an attorney write up the new contract if you are able to do it. I entered in to a land contract years ago and it ended up being a total nightmare. The purchaser moved out of state and quit paying on it leaving me to pay on a vacant home that I could not sell because he owned it legally. It took 3 years to track him down and quite a bit of money to go thru the process. My advice, DON'T DO IT!
Byron 402-681-3684 Deeb Realty
0 votes Thank Flag Link Sun Jul 4, 2010
Better check with your lender and work with an attorney in drafting a land contract. There is a "due on sale" or "alienation" clause contained within the mortgage agreement you have with the lender. If the lender discovers the "sale", they may call for full payment of the note. If you were unable to pay off the note upon demand, the lender could proceed with foreclosure. Your buyer would then have to come up with the full
payment or lose the equity they may have in the house.
On the other hand, if the land contract is not regarded by the lender as a "alienation" because you still retain
the rights to your property until your buyer makes full payment.
Then again, do you have a mortgage or a deed of trust collateralizing your loan. In that case, equitable titile is
held in trust, and under the land contract your buyer would also be holding equitable title.
Your situation could be complicated. Review your question with a competant real estate attorney before you proceed.
Good luck
Dean Uhing
Prudential Ambassador Real Estate
Omaha, NE
402-709-0727
0 votes Thank Flag Link Fri Jul 2, 2010
Yes.

Just as you can sell your home conventionally.

In a land contract, you're agreeing to sell the property (transfer the deed) once someone has fulfilled a commitment--usually payment of a certain amount of money over a certain period of time. Once they do that, they purchase the home by (usually) getting a mortgage. Rather than the full payoff going to you, part of it will be used to pay off your existing mortgage. Just as if you were selling conventionally.

Check with a real estate lawyer for more details.

Hope that helps.
0 votes Thank Flag Link Fri Jul 2, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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