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Contract for Deed

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bluely

Junior Member
What is the name of your state (only U.S. law)? Minnesota

We are trying to sell our house and have had an offer from "We Buy Houses" to do a contract for deed on the property. We would remain on the mortgage, they would pay me and then get someone to rent-to-own the property. What are the pros and cons of doing this? Is this a good idea, or very risky?
 


FlyingRon

Senior Member
Your problem is that if the "buyer" defaults, you are still responsible for paying the mortgage (and have to deal with evicting the buyer).

The contract for deed may trigger a due-on-sale clause in your existing mortgage.

We buy houses may not get you as good of a a deal as a traditional real estate agent.

Even if all goes well, the mortgage is still on your credit which means it may be difficult to get a loan on some other property.
 

HomeGuru

Senior Member
What is the name of your state (only U.S. law)? Minnesota

We are trying to sell our house and have had an offer from "We Buy Houses" to do a contract for deed on the property. We would remain on the mortgage, they would pay me and then get someone to rent-to-own the property. What are the pros and cons of doing this? Is this a good idea, or very risky?
**A: it's a risky scam.
 

FarmerJ

Senior Member
Blu I bought my first and 3rd homes as contract for deed sales , If you own it free and clear and are going to sell via a CD your best bet is to sell only to a party who will be occupying the unit them self , A atty can tell you important things like how long it can take to get some one out when they refuse to make contracted payments , what will have to be done when the buyer breaches other terms. A atty can write a well written contract for you that can require things like providing proof every year that the property is insured, things like baring the buyer from renting the unit to others for all or some of the life of the contract. Requiring the buyer to get consent from seller before making any improvements or changes to the house that require a permit. The list goes on, Why dont you use the links up top and atleast talk to a real estate atty , considering how messed up the market is , if you dont get good advice from a real estate atty & a well written contract and the house comes back to you , you could be in worse shape than you started out.
 

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