Seller Financing & Sub to financing

[Chad George]

If anyone is willing to provide some insight on how to execute either of these strategies it would be greatly appreciated. What contracts do I need? 3rd party note servicers? What are all the steps to protect me and the seller? 

[Nancy Truong]

I agree with Jeff and Rick. There are several types of seller financing. Another additional tip aside from the above posts, is to not go with contract for deed. Texas has strict compliance for seller's with contract for deed since it caused too many issues. Avoid that type of seller finance if possible. I'm assuming you are the buyer (not enough information above to give you more specifics). For instance, seller gives you possession of property. You fall behind on payment or payment is not accounted for. Seller can either evict you or foreclose on you (depending the amount already invested in the property. 

But even if you're not the buyer and possibly on the seller side, there's strict rules you must apply. Anyway good luck!

Notes here about Seller's and Buyer's right: 

If you violate (breach) any term of the contract and the seller wants you out, the seller must give you written notice by certified or registered mail. The notice must tell you want you can do to remedy the breach. If the breach is for nonpayment, it must state what you owe in principal and interest, additional charges (like late fees), and the date of each missed payment.

• If you’ve paid less than 40% of the total purchase price or made less than 48 payments and have not recorded your contract in the property records, you have the right to cure (catch up on all payments due) within 30 days of the notice. If not, the seller can cancel the contract and file an eviction suit in Justice Court to remove you from the property.
• If you’ve paid more than 40% or made more than 48 payments, or if you recorded your contract in the property records and you defaulted on payment after Sept. 1, 2015, you have the right to cure within 60 days of the notice. If not, the seller can post, file, and serve notice of sale as a foreclosure. After a foreclosure sale, the purchaser can file an eviction suit to have you removed from the property
• Nancy Truong, Texas Attorney at Walter & Truong PLLC.