What Do You Do With Deadbeat Buyers???
Hi everyone, I have three houses lease/optioned and a forth I'm considering a CFD on. With the L/O I can evict a deadbeat tenant; but what do you do if your buyer on the CFD stops paying and decides to continue living there for FREE? thanks , Don Gossett 
First and foremost...
Keep in mind that if you do CFD they'll be giving you some serious beans. It's really not in thier interest to give you a bunch of money and then stop paying. You can hold on to the contract and NOT record it at the county. That's what I plan on doing unless my buyer is really savvy. If so, I've heard that people just pay the "buyer" to leave and sign a quit claim deed back to you. Cash says he has done this numerous times. Give them 1K when they move, without tearing anything up...
Sam[ Edited by samedwin on Date 03/09/2004 ]
You need to check the laws in your state concerning a contract for deed, but in most cases, you can write in your contract whether it would be an eviction or foreclosure. Again, your state laws will determine this.
samedwin's is correct that if you're doing a CFD, you should be getting 5-10% down. However, no need to have them sign a quit claim deed since the deed was never in their name to begin with.
Roger
Whether it is an eviction or a foreclosure isn't it difficult to actually get them out of the house? I mean this could be a few months where you are paying the mortgage. I understand that it really isnt that bad of a situation because you are building your equity in the process, but it still really puts a financial strain on you if you werent prepared to do this.
A few things...
1. Recording. It can be legally required that all such contacts are recorded or they are considered invalid. Be careful and check what the rules are in your state.
2. You are selling if you use a CFD/land contract, etc. You are effectively commiting yourself to a foreclosure or an agreed sale from the buyer back to you. There might be other options but you are not in the same position if you were using an L/O.
3. The buyer has advantages on a contract compared to being a tenant. Hence they also should recognize that you expect a more substantial down payment. If they lack the funds then put them on a lease/option uintil they have the funds to be on a contract. You are selling yoru interests and they should be paying.
4. If you have a larger deposit then consider leaving part of it in an account so you can use it to make the payments when foreclosing. Something like 10 months cash to keep the payment current. Not the best leverage but a cushion.
5. Have the buyer make their payments to an excrow account that makes the payments monthly. Nice, clean records as to when the payments were made, etc. Not arguments about you lost something, etc.
John
Thanks everyone for all your replies... Don Gossett