Contract for Deed? Sometimes it’s the most sensible option.

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Image courtesy of phasinphoto, / FreeDigitalPhotos.net

There are many ways to sell a house and for most of them, I highly recommend a licensed Realtor. Every once in a while,  a client of mine will bring up a situation that’s unique.  I enjoy these one off situations because it’s a exercise in creativity as well as a chance to offer direction and education. “Cody and John” were very recently married when I first met them.  They were also expecting their first baby soon and needed to move out of the tiny home that John owned.  Here was the problem: John bought his home at the peak of the market.  Three years later, he owed more than the home was worth and wanted to avoid a Short sale with the bank to protect his credit. Fortunately, Cody had a friend looking to buy a house but couldn’t get approved for a traditional mortgage with her credit history anyway.  This left both sides with an obvious solution: Having Cody’s friend buy the house from John on Contract for Deed. This was when John called me to see how to go about this. I am not an expert on Contract for Deed’s.  My expertise is in Mortgage’s themselves. Fortunately, I have worked with many different professions and situations over the past fourteen years and sent them to a former client of mine who specializes in real estate law.  Scott could walk Cody and John through every portion of the Contract for Deed, ensure they had every legal protection in place that they would need and complete the transaction for them.  This is when I got to do my job and walk them through buying a new home for their budding family. Cody, John and their little daughter are happily set in their new home.  I still get to check in with each of them for pictures of their growing daughter and share parenting stories. It sounds like #2 won’t be too far off either… Have a great week!   -Matt

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