If They Say They Will Sell For What They Owe

If the seller says they will sell for what they owe, understand that you are taking over their debt. One of the things you want to make sure that you do is to cash them out and only pay what they owe at that time; keep in mind that is all you can pay. Remember, you'll pay the bank directly; the seller is no longer a part of this. They are going to deed you the house and you’ll never have to see them again as long as you live. Now if they're afraid of the loan staying in their name you can always buy on an agreement for deed and accomplish the same thing. You have to structure that agreement for deed so that your balance is what their balance is on their mortgage. Keep in mind that this is not the same as cash control. There is no cash; you are buying it for what they owe on it! It’s not complicated, so don’t make it harder than what it has to be. Now what if they have had a tenant and they have been collecting from the tenant and making the payments themselves? What if this is the only way they would be comfortable doing this? Basically you’d be paying them and they would make the house payment. You can do this couple of ways. You can pay it into an escrow account and let it make the payment for you, or you can have an agreement that you pay the bank directly. Either way- if you do an agreement for deed they should put a deed in escrow with the agreement that they signed saying when you pay it off, that deed transfers. Remember, your attorney must hold the deed. Realistically, you need to do this in front of an attorney even if just taking the deed subject to. Just remember this, if you're in somebody's house and they won't give you the deed, you probably don't want the deal anyway. Plain and simple-if you're dealing with the right kind of seller you don't have problems getting the deed.n