Seller financing sample contract/Questions

[Harri Smith]

Hi all
I am a considering doing a seller financing and wanted to know if someone had a sample of contract they could share. I am told I do not really need an attorney.
A few questions I have are:
1. Can I keep the title ( deed) to the house until balloon payment is made?
2. I want x amount per month and do not want to have to deal with interest. Do I need to specify interest amount? If so what are the advantages to the seller? Buyer?
I would require the buyer to pay city and county taxes, utilities, insurance, etc ( just like any other mortgage).
Thanks in advance.

[Ann Bellamy]

Harri Smith, When you say negative equity, it sounds like you have an existing mortgage on this property. If that's the case, will the payments that your buyer is making to you, cover your payments you are making to the bank/mortgage company? This is called a wrap mortgage. You should definitely engage an attorney in Ohio if you are trying to do a wrap.

You should be aware that if you cancel your insurance policy, and the bank is notified, they will know that you sold the property, and may call the loan due. Also, it is not impossible that your buyer could, at some future date, walk from the deal and leave you with a property in worse condition than when you sold it.

I'm not trying to scare you, and I am far from knowledgeable on wraps and land contracts, just trying to raise your awareness of the complexity of the transaction so you don't get burned.

If I'm wrong and you don't have a mortgage, then you can ignore everything I said except for the attorney. I'd still consult an attorney if this is a new process to you.