Contract for Deed in Texas!

General Real Estate Investing
1

Hi All :mrgreen: !!

I have a situation which is ripe for a CFD. :banana

But I remember much discussion lately on the inappropriateness/ unattractiveness of CFD’s in most situations in Texas (at least for REI, in light of recent rulings) :banghead. Am I recalling correctly at all here? Can anybody PLEASE give me a quick update? :thumbsup ??? :flush ???

Thank you SO much!!

Vinny

2

:F BTW, I should have told you, I am the Buyer here and the seller does not own the house Free & Clear.

Thanks!
Vinny

3

I would get a deed and get it recorded. I would not worry about due on sale clause. If seller is worried you may use some other avenue such as deed to trust and trustee. The more money you put into the sellers pocket the less worried they should be. Ther has been a lot of discussion here about selling to tenant/buyer on CFD but not a lot on investor buying on CFD. If you make payments to seller and thet in tern make mortgage payments this could get crazy. I was paying a dude 500 a month for some property and he sent me copies of the payments he was maling. He was a good scam artist and within a few months the bank started foreclosure. Try the trust idea or tell the mortgage company you manage the property for the owner and will be paying all payments and handling all affairs. This will need to be in writing usually and signed by the sellers. Hope I helped some

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

4

If you want to get really technical then you can find the text of the Senate Bill 198 on this website [b]http://www.fnacusa.com/legislativechanges.htm[/b] if you want to read it.

Cary D