Record A CFD?
Just curious - when selling do you record a CRD and if not, why exactly?
Also would you close the same way that you would usually when selling this way?
Thanks in advance and have a great day!
Warmly,
Richard P. Belliveau 8-)
Sorry, I meant CFD - Contract for deed. Thanks.
8-) Thanks Lou. That is what I have heard as well. Do not record or file. How about the closing though when you are selling? Do you close with your normal title company or attorney? Thanks and have a great evening.
Warmly,
R.P.B.
[addsig]
Lou, Thanks for the reply however I am confused by your statement here. Remember we sold on a contract. Therefore we do not own it anymore and we did not lease it either. We just did not record it. The actual owner occupant, who we sold on a contract, should get the tax advantages and interest deductions. I believe there is a form that would be sent to them at the end of the year to fill out for that. I believe Mr. Locke states something about having a Loan servicing co. take the payments from the buyer to keep the records straight and all. A little foggy on this but that seems to be how it goes.
Thoughts?
Have a great day!
[addsig]
The law on "foreclosing" on a CFD is not the same everywhere, so a seller should learn and work with his law when deciding whether to record or not.
E.g., here in WA State, a statute gives the seller, on a recorded CFD an alternative method of legally recovering his property in even of a default.
Here, a seller could file a "Contract Forfeiture" action which is much simpler and cheaper than a D/T Foreclosure proceeding....so here, often times, a seller will hold the original CFD in his files, and not record it unless/until he is forced to file a Forfeiture.
Then he will record as step 1, and proceed with his Forfeiture action as step 2.
Dont even worry about the bank. They dont want another reo on their hands
Hello,
You are going to take $10 grand out of your own pocket and pay this guy? I guess it is just diffferent investment goals but there are many deals out there that you can pay no money down or or even get the seller to pay you! I have bought over 15 homes now where the seller has paid me up to three months of payments for the deal. If the seller has equity then I sign a promissory note to pay them that equity on the tail end of the deal. Could I have more homes if I did offer walkaway cash, you bet but the no money down works great for me.
Heck take the 10 grand find other deals, offer one thousand walkaway ten times and get yourself ten homes!
Rob Carroll
Anderson Investment
thanks rob. i guess i didnt mind putting 10K down b/c i was motivated to get a deal going and rent2own candidate will obtain financing within 3-6 months. I will definitely try your approach on the next deal though.
So the warranty deed-title search will ensure that seller will not borrow on home before and/or after close?
As soon as you record the deed, you own the home. The seller cannot borrow against something he/she no longer owns.