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Karen Flagg, Home Buyer in San Antonio, TX

Would the seller consider a contract for deed?

Asked by Karen Flagg, San Antonio, TX Sun Feb 12, 2012

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There is nothing wrong with doing this if you are smart and go thru a good title company to have all the docs recorded properly, I do this all the time. I work with buyers and sellers, don't stop making your payments and refinance as soon as you fix your credit issues. Call me I would love to find you a home and have a great title Company to help me keep things legal and safe!
Adriana Vann
210-685-1074
0 votes Thank Flag Link Sun Feb 12, 2012
Thank you so much. This is very helpful.
0 votes Thank Flag Link Mon Feb 13, 2012
"Contract for Deed" are still legal illegal in Texas now... I would recommend doing A TON of research before you do anything.

There are some questions to be asked:

What kind of loan does the seller currently have on the property?

Most loans have a "Due on Sale" Clause, and if the documents are property recorded at the courthouse, the lender may call the loan due, and most cases, they do call the loan due, which as you can imangine will cause a whole boat load of problems really fast.

Here is a great article to read: http://recenter.tamu.edu/pdf/1754.pdf

The Attorney General also has some good advice: https://www.oag.state.tx.us/consumer/buying_house.shtml

Here is another "Buyer Be Aware" type of article to look at as well: http://www.ntxe-news.com/cgi-bin/artman/exec/view.cgi?archiv…

The fact is... there are TONS AND TONS of lawsuits in Real Estate, and a BUNCH of them come from "Contract for Deed" or "Rent to Own" type of deals. You are much better off doing an owner-finance if you just cannot fix your credit enough to get an FHA or other type of loan.

Just go in with your eyes wide open, take the time to read the pros and the cons, and decide if this is a direction you feel comfortable with.

If you have any real detailed questions.. a call to a really good Real Estate Attorney is always wise.

Jason C Campbell
Keller Williams Realty
210-389-5266
Web Reference: http://www.SAHomeExpert.com
0 votes Thank Flag Link Mon Feb 13, 2012
Obviously I need to be educated and I thank you all.
0 votes Thank Flag Link Sun Feb 12, 2012
I want to thank you all. What is the difference between a contract for deed and owner financing? Isnt it the same?
0 votes Thank Flag Link Sun Feb 12, 2012
I would not recommend a contract for deed for any specified time period. In a contract for deed you do not hold title until you finish paying off the home. You can do owner financing with about 10% down and most sellers are allowing for 5 year balloons. Visit my website for a list of owner finance homes. http://www.saownerfinance.com
0 votes Thank Flag Link Sun Feb 12, 2012
Contact for deeds usually do not fare well for the buyer. If anything happens and you end up missing a payment or are ever late you will lose ever payment you ever made on the property and you will start over at 0.

Chris Hutchinson
REALTOR
Chris Hutchinson Real Estate
The Michael Group
972-809-0607
wwe.chrishutchinsonrealestate.com
0 votes Thank Flag Link Sun Feb 12, 2012
I'm looking for a five-year contract, max, at which time I would refinance.
0 votes Thank Flag Link Sun Feb 12, 2012
Don't ever do contract for deed. We've tried to get rid of this in Texas because is is so risky for the people buying. You miss a payment potentially 20years end to the mortgage and you could lose the house.
Make sure if you want to try this that you hire your own Board Certified Real Estate Attorney to review all documents. One that you pay for yourself and you meet with alone.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sun Feb 12, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
No, I'm working with a lender. I was one of those who got taken advantage of in 2008. I'm looking for contract for deeds for a five year contract.
0 votes Thank Flag Link Sun Feb 12, 2012
Karen,

Are looking for seller financing options? Those are out there to be had,
.
Tabitha
414-4255
Web Reference: http://www.kingrealtors.com
0 votes Thank Flag Link Sun Feb 12, 2012
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