I did not think that was such a strange concern. Maybe I was not very clear but my concern was having the appropriate CYA legal paper trail JUST IN CASE the seller or a Title company questioned the legality of simply transfering ownership from the “lender” to me. As you know, the seller does have an equitable interest in the property and my question had to do with how we document their release of that interest.
Thank you for answering the question - after consulting with an attorney, I am taking your advise.
I got a call last week from some sellers who are in foreclosure. In negotiations, I find that they bought it 5 years ago on a Contract for Deed. The original seller (we will call him the lender) is someone who I am acquainted with and he said he will not discount but I could assume the payments ?as-is? or we could create a new note and deed of trust with the same terms. After finding this out, I write an earnest money contract with the sellers to buy the property by assuming the loan.
The balance is $28K and with about $4K of rehab the house would be worth about 50K so it?s a good deal - the strategy is to keep as a rental. My question is…what kind of document or instrument should be used to transfer the sellers interest and keep them from coming back later and accusing me of taking their house?