Posted by Steve Carlson on May 10, 2001 at 10:32:50:
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.
Regards,
Steve
Assuming a Contract for Deed - Posted by Steve Carlson
Posted by Steve Carlson on May 09, 2001 at 24:42:41:
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?
Regards,
Steve C (TX)
Re: Assuming a Contract for Deed - Posted by JPiper
Posted by JPiper on May 09, 2001 at 06:42:51:
Wow!! Not sure where that question came from! Why are you concerned about the seller “coming back later and accusing you of taking their house”???
In any case, I would probably have the seller assign his interest to you…and for the purpose of doing that I would probably have an attorney write the “assignment form” up.
I would have the “lender” issue a letter consenting to this transfer. The seller may well want a release of liability from their payment. With this from the “lender” they are still on the hook.
JPiper