Buyer Wants Out Of Owner Financed Contract
Hello,
Bit of a legal question here: an investor purchased a condo from me on a contract for deed, 9% interest 30 year amort, 1 year balloon full amount. The investor now wants out of the deal after 4 months. I would like to provide a win-win situation for him and me. Is there an alternative to him just losing his investment and filing a quit claim deed ? Could he find a buyer for the condo at a price above or at what he owes me ? He doesn't really own the property, so is that legal for him to find a buyer then cash out of the property ?
thanks folks !
jared
When this happens, it becomes very profitable because you keep all monies paid thus far and you can go find a new tenant.
However, I applaud your efforts in creating win-win transactions. Quite frankly, you are running a business here, and there are limits on what I feel you should do.
Tell him that he has 4 options:
1. continue paying on the contract for deed
2. have him refinance the loan and start paying the bank
3. sell the property for enough to pay off what he owes you
4. sign a document canceling the contract for deed and giving possession of the property back to you.
More specifically on your question--yes he can sell the property. You will need to have recorded either the contract itself or the affadavit and memorandum of agreement. This land contract will give your buyer marketable title which will allow him the right to resell the property[ Edited by myfrogger on Date 09/20/2004 ]
are you carrying the note? sounds like you are holding all the "aces". if you are fin. the deal and have it contract for deal. you can do whatever you need to do. i would not let him out of the deal without a profitable penality. if you are not fin. the deal he can sell if you allow him to sell, as long as he pays the balance owed so as to not leave you with a balance owed.......km