Posted by Mike Daly (GA) on March 24, 2002 at 21:06:21:
The two main things you want are a deed in escrow and a performance mortgage. The deed in escrow allows you to get the deed if the seller just disappears. The mortgage allows you to foreclose on the property if the seller refuses to sell later on. You can also record the contract itself (or a memorandum that you have a contract to keep the terms of your contract private) – this will cloud the title if the seller attempts to sell to another party.
If you search the archives, you’ll find more info this.
Buyer’s protection on CFD? - Posted by mizpah
Posted by mizpah on March 24, 2002 at 19:27:00:
If I’m buying a property on CFD, how will I protect myself from the seller putting liens, filing BK, selling the property to a third party or anything that will prevent me from getting the property in the future?
what other problems that I did not mention (I know there are more) that is significant enough that I need to know and do my best to avoid?
Thanks for any advise.
Re: Buyer’s protection on CFD? - Posted by Bud Branstetter
Posted by Bud Branstetter on March 24, 2002 at 23:02:12:
In most states the CFD can be recorded. This shows your equitable interest. If the seller does not want to do that I would be suspicious.
You can play with title to a land trust or performance type mortgages but you need to do a title check before.
You are not going to prevent the seller from filing bankruptcy. If their problem is alerting the lender as to the sale then use your favorite subject to approach. If all he wants to do is unrecorded CFD and no insurance in your name then you are skating on thin ice.