Adam, Home Seller in Mesa, AZ

contract for deed in Mesa?

Asked by Adam, Mesa, AZ Thu Sep 13, 2007

i have someone that wants to purchase my home for 1.5 and do it contract for deed in 6 months they would pay me 12,500 per month. i don't know much about this what is my risk. they want to be on the paper so they can refi in 6 months the home appraised at 1.72.

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Hjf9031, Home Buyer, Mesa, AZ
Wed Dec 26, 2012
We Buy Contract for deeds. http://www.notebuyerservices.com
0 votes
Sandra Hersh…, , Mesa, AZ
Thu Nov 1, 2007
Adam, your question makes me cringe. The most worrisome part was "they want to be on the paper so they can refi in 6 months." So they want title ... that leaves you on the original note with no collateral. Run, Adam, Run. Work toward a straight sale or even a lease purchase, but not this. If you do decide to go through with it, hire an attorney...a real estate attorney...not someone's brother-in-law.
0 votes
Brad Bergami…, Agent, Prescott, AZ
Thu Sep 13, 2007
Wow, you need to talk to a Realtor or attorney quick. After that call your insurance agent to find out what might be covered if you rented your expensive home. First things first, you want to sell they want to buy, great!
If they can pay you $12,500 a month on a month to month basis, great!
You have to ask your self a few questions,
1. can I pay for the home if I have to evict them? and for how long?
2. Why would they lease your home at such a high rate?
3. What happens when they don’t pay?
4. More importantly when do you get your rent?
If they are asking you to take payment at the end, there is no way that I would enter this type of agreement even with a bunch of cash upfront. I know it might be tempting, but someone that want’s to buy a 1.5 million dollar home that has cash flow issues isn’t the most stable renter. And you can’t afford to have a free loader in your home to trash it while not paying you a dime for months. Other considerations are HOA fees, your lenders policy and more…
Get a good attorney or broker that has worked lease options or purchases. A commercial broker or attorney would probably work best as it is going to be a more in-depth contract.
If it is a good deal for you, get it done. But do it right or you will be paying for a long time.
Web Reference:  http://bradbergamini.com
0 votes
Mr.P, , Arizona
Thu Sep 13, 2007
RED FLAG.
SEEK LEGAL ADVISE.
If they can afford 12,500 a month. They would or should be buying it outright NOW!
What is going to change in 6 months in this credit market?
0 votes
Mr.P, , Arizona
Thu Sep 13, 2007
RED FLAG.
SEEK LEGAL ADVISE.
0 votes
Richard Dobb…, Agent, Scottsdale, AZ
Thu Sep 13, 2007
Hello, Adam, and congratulations on finding a potential buyer for your home. I think you are going to receive a lot or responses agreeing with the first answer. This sounds like a very risky transaction. I would either consult legal counsel or hire a Realtor to help you through the transaction. Good luck and be careful.
0 votes
Ilona Poka, Agent, Mesa, AZ
Thu Sep 13, 2007
Hi Adam
I agree with Patrick. Counsel is definitely needed. You want to make sure you are protected.
Why would they want to refi in 6 months, rates are good right now!
Have a great day and good luck
Web Reference:  http://www.ilonapoka.com
0 votes
Patrick Harf…, , Gilbert, AZ
Thu Sep 13, 2007
Adam,
This transaction has a very high degree of risk. I would recommend you seek competent legal advice, as most Realtors are not skilled at this type of transaction. Don't mean to be a buzz-kill, but this one is way too risky...
0 votes
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