New Guy Owner Financing Question

Comments(8)

• 
  patrecejames22nd September, 2004

  could you please explain " but I don't know what steps to take to protect myself from the seller mortaging the property after the fact "
  [addsig]

• 
  wannabe2122nd September, 2004

  If you get a deed and have it recorded, then you're protected since one cannot encumber what they do not own. Any mortgagee/beneficiary should check title before lending, and when it turns out that your seller is not the present owner then no lien can be placed on your property. You need to become more acquainted with real property law for your state.

• 
  alan_small23rd September, 2004

  Thanks for the advice. I'm trying to learn as fast as I can, and this message board seems to be a great tool for learning. Any suggestions on effective ways to become more aquainted with the law? Thanks!

• 
  alan_small23rd September, 2004

  Sorry, I should have been more clear. For instance, if the owner holds the deed, and he offers me owner financing, what is to keep him from mortgaging the propery after I begin sending payments?
  Thanks again!

• 
  bnorton23rd September, 2004

  Alan,
  
  Are you buying a contract for deed?

• 
  alan_small23rd September, 2004

  That's what I was wanting to do, but I'm wondering about losing my equity if the owner declares bankruptcy, or decides to take out a mortgage on it.

• 
  tmpringle30123rd September, 2004

  If an affidavit and memorandum of agreement is filed with the court, he should not be able to encumber the property as he does not have legal authority to do so.
  
  Check with your local investment clubs to get the name of a good "investor friendly" attorney in your area and consult him/her to get the full scoop for your particular State.

• 
  bnorton23rd September, 2004

  Tmpringle is correct. You can file a memorandum, or an affidavit to prevent this.