What happens if…
A. The seller doesnt make his payments/goes into forclosure.
B. The seller pulls out more equity than the sale price one year into a deal.
C. The seller dies.
D. The buyer/tenant dies.
E. The seller encumbers excessive liens while under a L/O agreement.
F. Can the buyer/tenant get or encumber liens on the property?
Basically what happens when it all goes to $%#@?
Don’t let everything go to $%#@.
Set yourself up for success from the start. There are tons of posts in this forum that answer everyone of your questions. I would sit here an write a book trying to answer all of them in detail and I just can’t take the time to do that…sorry? I will try to give you a quick 1-2 punch on each one.
A - Escrow or Trust
B - Record your option first then all liens are Jr. to yours. You can then foreclose first and wipe the other liens out.
C - Answer this question in your contract…what do you want to happen?
D - Get a new one…again, put it in your contract, what happens
E - Same as B
F - Put it in your contract with the T/B that they cannot record their option and therefore they cannot encumber any liens…the title is not in their name.
Hope this helped. Again, read some of the other posts in hear and you’ll get better and more specific answers.
Good Luck!!
Thanks GT.
You sure helped. I know I have alot to learn, and this forum is great! Thanks everyone ;D