First could someone tell me… Is there a difference between Owner Financing, Contract for Deed, Land Contract, Promissory note, or are these all the same thing. I’m getting confused here.
And secondly, I keep reading about how to file for foreclosure on someone that you finance…Is this nesscesary, or only if the occupants refuse to leave? Can I run into trouble later if I just rip up the contract and start over financing someone else?
And of the above menchioned different types of contracts, is there one where I would not need to file for foreclosure on someone if they did not pay? Say, a promissory note?
I beleive Contract for Deed and Land Contract are the same thing. In both cases the buyer doesn’t get the Deed to the house until they terms of the Contract are fullfilled.
A Promissory note is simply an agreement between two people of money owed (think of an IOU).
Owner financing is where the buyer would get the Deed and you just hold the financing (you are replacing the bank).
If you owner finance you would only be forced to foreclose if they refuse to leave. However, if you can get them out you may be able to pay them move, and it would be worth saving the hassle.
You could use a lease/option instead and then you wouldn’t not need to foreclose you could do an eviction instead which is quicker and less expensive.
:cool YOU need to have as part of your contract just like the bank would !!! A outline as to what would happen and how if the buyer stops making payment on the contract !!!
AS POSTED YOU HAVE BECOME THE BANK !!!
OR you could just sell your note and never have to worry about it again !!! BUT right now with things as they are your price may be less then you want !! KEEP in mind with this business cover your backside and know there are all ways options !!! :beer