A pre-foreclosure owner wishes to sub-2 her property to me. She currently has a contract for deed with the family in the house. The CFD was not notarized nor filed in any manner. If I take the home sub-2 am I still bound to this CFD or can I peacefully evict them from the property?
Howdy Breakout:
If the property gets foreclosed on the contract for deed will become void. If you buy it before the sale you will have to honor the contract.
Also contracts for deed in many states are not used very much any more due to new laws. If you have enough spread you may want to close on the sale and then sell to the occupants on a note and deed.
I am assuming the occupants are current on their payments to the seller and are not in default. If they are in default too then you have the right to cancel the contract and then evict if they have not moved. The new laws make it hard to cancel a contract for deed and I would get an attorney to help if this is the case.
LOL
Thanks for the info Tedjr. Your advice is always appreciated!! Yes they are current. The cash flow is near $400/mth so I think it will add to my monthly cash flow quite nice.