Agreement for Deed: What You Need To Know

Have you heard of agreement for deed but you’re not really sure if this would apply to you? Not really sure of how it would work for you? Let’s say you have a mobile home that you took subject to for $21,500.00 and you got it priced at $39,900.00. The property also sits on about an acre. You have a guy who is interested and you told him that if he could come up with $5,000.00 that you would carry the note for him. And he told you that he could do that but his credit was terrible and that was the reason you offered to finance. You don’t really know a whole lot about agreement for deed.n nThe first thing I will tell you is that you need to see your attorney on this because you have two different deals here. You have a mobile home, which you may be able to get back a lot quicker even then you get the land and you are definitely going to have titles involved. This one needs to be closed with your attorney and you just ask him what is the fastest way that you can close this thing and get it back if he doesn't pay. Another question to ask is does this guy have anything else that you can use for additional collateral? If the answer is yes, then you have collateral to protect yourself. If the answer is no, and then perhaps you could sell him the mobile home on a promissory note. This would option him the land so when he pays off the mobile home you will give him the land for $100.00. That way you don't have to foreclose. This may be also called a UCC1, but it is best to check with your attorney to see what your best option is. In fact make sure you are asking your attorney the right question. What you really need to be asking is, how can I sell a mobile home to someone, excluding the land, and take it back quickly if they don't pay? That’s really what it boils down to, right? You should also ask if you should separate the land and option it to him so you don't have to foreclose. It may be just as easy to sell the whole thing on land time track. Again, you are better of asking your attorney. Good luck!n