Owner finance

General Real Estate Investing
1

Hi all,

I’ve got a house that I am thinking of selling with owner financing. I have read the e-book “Owner Will Carry” which was helpful but I still have a few questions, especially specific to CA.

  1. If I sell on a land contract then the title remains in my name, correct?

  2. If the buyer can’t make payments, what is the process for removing them? Eviction or foreclosure?

  3. Would using a land contract be a trigger for the due-on-sale?

I plan on talking with a RE Atty. prior to setting anything up but I wanted to get some feedback from here first.

Thank you.

2

Brewer,
A better book might be Streetwisesellerfinancing by Eddie Speed.
You can get it free at Colonialfundinggroup.com
1.Yes
2.Foreclosure or U-haul money.
3.very doubtful.
LOL herbster

3

Thanks for the info.

As for U-Haul money, basically you are trying to pay them to get out of the house, is that correct? At least that is my limited understanding of the term. Can you elaborate on the concept?

Would you suggest this strategy compared with using the L/O approach and why? Thanks for the help.

Brewer

4

3. Would using a land contract be a trigger for the due-on-sale?

Yes, it does. The lender has the option of calling the loan due, although, I seriously doubt the lender will do so as long as the loan is current.

5

As the seller, would you want the land contract recorded?

6

Slipring,
Typically Land Contracts ( promissory notes ) are not recorded. Once recorded it could throw up a red flag to the Mortgage lender enabling them to pursue the DOS clause. Herbster