Reselling Contract For Deed
I would like to know the best way of going about structuring this deal:
I buy a house on CFD for $80,000. The house is worth $100,000. Can I sale the CFD for $70,000 to another buyer? (I have my reasons for that).
1. Do I still have more priority ownership over the property than the 2nd buyer?
2. Do I still get some tax benefits?
3. If 2nd buyer defaults can I sell the property, on CFD?
nearneshka,
Glad to meet you.
Q. I buy a house on CFD for $80,000. The house is worth $100,000. Can I sale the CFD for $70,000 to another buyer? (I have my reasons for that)
A. Do you understand what a Contract for Deed is? Are you thinking you can sell the CFD for $70K cash?
Q. 1. Do I still have more priority ownership over the property than the 2nd buyer?
A. NO
Q. 2. Do I still get some tax benefits?
A. NO
Q. 3. If 2nd buyer defaults can I sell the property, on CFD?
A. NO
John $Cash$ Locke
[addsig]
Each states different. If yuor cfd buyer defults you will either ahve to evict or foreclose. After you kick them out then you rcan resell on cfd.
I do not see a reason why you could not sell your Contract for Deed to someone else provided there is language in the CFD that allows you to do this.
Under a Contract for Deed, the seller retains "legal title" to the property until the contract is paid in full. For you to create a new CFD without holding "legal title" and in your case you do not, I would recommend against doing it this way.
John $Cash$ Locke
[addsig]