Contract For Deed
I have question about it:
If someone buys a house in FL and they use a contract for deed, can they then sell it? What happens at closing?
Here is an example: billybob buys a house from nancy for 50,000 they use contract for deed and billybob gives nancy 5,000 and agrees to interest only at 7% with a balloon in 90 days. Billybob finds new buyer for house at 75,000 in 60 days. New buyer, lets call him Raphael, is getting conventional financing for 90% of the 75K and he wants billybob to hold a second for the other 10% of the selling price. How does the actual closing work?
This is a real deal the names have been changed blah blah blah....... 
[ Edited by Ricker on Date 03/08/2004 ]
Any ideas? Did I put this in the right area?
Did Nancy give you an unconditional right to assign?
She gave it to billybob..... yes
Hi Ricker,
Don't know if you still need info on this issue...
Billybob simply assigns the land contract to R (with conditions for prompt closing, getting paid, etc.). At closing, N is taken out for the 50k, billybob walks away w/ 12.5k and a second (receivable) for 7.5k.
R gets a fee simple deed (encumbered by the 1st and 2nd mortgages).
If you plan to do land contracts... make sure they are notarized and recordable.
Ken Wade