Owner Finance Deal goes south. One question...

Owner Finance Deal goes south. One question...

Atlanta, GA · Member since 2010 · 29 posts · 0 votes

Facts: Hi, I have a home that was sold on owner financing. I sold it with a land contract, keeping title/deed in my name.

The people living in the house are behind on their payments by just over 1 months. My contract is the one William Tingle uses/used, that states that the contract converts to a lease agreement if they stop paying/get behind. We have a court date set for 3/6/2012, but if they want to work a deal out to where they leave the house and sign it over to me, I'm wondering how this can be done. How do I absolve this contract by having them sign it over to me when I am the very one holding the deed? I want to avoid the evictions process, because I don't want the judge to rule my contract negated by state law that says/or may say that a note holder must publish the foreclosure for four weeks prior to the foreclosure sale. Can someone help me with this? How do I absolve the contract cleanly if the occupants are willing to absolve and move out rather that electing to meet me for court?

Thank you so much for your help.

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    14y

    First of all, you want to dissolve the contract, not absolve it! The answer really depends on the laws of the state the property is located in. The cheap and simple solution is to have the "buyers/tenants" sign a waiver of all rights to the property and move out. The better solution is to seek the advise of a competent attorney.

    Private Mortgage Financing Partners, LLC
  • Real Estate Investor · Baltimore, MD · Member since 2008 · 1k+ posts · 268 votes
    14y

    Whatever Don said
    Plus - I 'd double check the law regarding converting the land contract into a lease agreement in the event of borrower's default.
    It doesn't sound right to me.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    Generally, a land contract/contract for deed, a quit claim deed is made at closing and is held in escrow for such events.

    Obviously not, have them execute a quit claim deed and file it.

    Next, move them out. Cash for keys might be easier especially if you have a new deal cooking for the place. Good luck!

  • Atlanta, GA · Member since 2010 · 29 posts · 0 votes
    14y

    Thank you all for your help on this question. I appreciate it.

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