Contract for deed/ Note Buying? - Posted by Leon

Posted by Leon on November 12, 2000 at 16:23:07:

This may seem to be a stupid question, but here it goes.

Say I buy this home that I am looking into taking it subject to the first Mortgage. Here are the numbers

FMV 62,000

Mortgage balance 42,000 and change

I am going to give sellers 2K to walk and I take over the Mortgage *(Not Assume)

I will Have 44K plus about 2K in Fix up so 46K max. The 2K fix up I think I can pass on to my buyer.

I already have a buyer for the property that has 3500 to put down.

Here is what I was thinking of as far as terms

Do a 85% first of 52,700 360 term 12% rate

And a 5,800 second 360/60 term at 12%

Since this is going to be a Subject to transaction I need to structure the sale to my buyer right. I plan to sell the first after I season the payments say 6-12 months.

My question is according to the terms above can I do a Contract for deed and sell it? I know that all the other liens have to be paid but what type of paper work is involved? I have a FNMA type mortgage and Note do I use it and not record? I just need some clarification.