Of course! but you might want to make sure and wait for someone else to confirm it as I am unsure. Better yet, why don't you contact the Lending Tree guys because they can give you an answer better...

Thank you for your post but could you elaborate...

You're not missing anything. There are people who make their living looking for deals like this..

Buy the house, sell it back to her on a contract for deed or a lease purchase agreement. Get an attorney to help you with the details..

Go forth, make money. Prosper. :)..

Very bad advice. If you want an informed opinion go see a real estate attorney. Just for openers you would be breaking your mortgage contract by buying a house and immediately selling it on contract. Virtually all mortgages have a due on sale clause meaning if you sell it you must pay the note immediately. Foreclosing on a house makes a car repossion look easy. This is serious business because a mistake means going to court.

In any event good luck...

I'm thinking, as the lienholder, you would only be entitled to the loan amount, accrued interest, fees for foreclosing and resale, etc..

You wouldn't be entitled to her equity...

You are SOOO critical! What, did you wake up on the wrong side of the bed this morning?.

The mortgage contract requires that the buyer maintains an owners interest in the property. Contracts for deed or lease purchase agreements satisfy this requirement. Further, the sale date isn't until the contract is fulfilled, at that point the mortgage company gets paid off. It's done all the time..

Are there details he needs to be aware of? Things he needs to do to protect himself? Absolutely! That's why I said he should get an attorney. I should have said real estate attorney. Mea culpa..

Why not?.

Foreclosure transfers title of the property. If you hold a $100 mortgage on a million dollar home, and you foreclose on that home, you get the home and all $999,900.00 in equity. Of course, since the $100 was yours to begin with, you now have an even million in equity...

Here's a good.

Site.

For learning about creative real estate investing..

Gib..

Mycroft.

Once again you are being a fount of misinformation. Here is yet another example of you giving incorrect information. When a property is foreclosed upon, it is auctioned. The forecloser is only entitled to recover the amount that they are owed plus costs. Anything beyond that goes to the original owner of the property. Let me try to explain in a manner that you will understand.

Party A holds the mortgage. Party B defaults on the mortgage and causes Party A to foreclose. Party A doesn't just regain title to the property. Party A must sue for foreclosure and a court decides and agrees that the mortgage is in default. The court is then required to auction the property to cure the default.

Party A is only entitled to receive the amount that they are owed plus costs to foreclose. Any excess funds must be paid to Party B..

Mycroft, I would suggest that either you become more accurate in providing responses to posts, or maybe just stop posting altogether..

Fla-tan..

Mycroft.

No you are the one who is again giving inaccurate information. A contract for purchase can very easily invoke the due on sale clause. Now, if you had simply said that a lease-purchase contract be done, then I would have said that you are essentially correct. But under the way you posted, once again you are wrong..

Fla-tan..

Fla-tan,.

I've done a number of contract for deed refinances, and it's not at all uncommon for the person selling the property on a contract for deed to have a mortgage on the property. While not common, this type of transaction is done..

While I'm not a real estate attorney, I do know the following:.

1) The person that sells a property on a contract for deed still owns the property until all the money on the contract for deed is paid. While I'm not an attorney, I assume this is why the acceleration clause in the mortgage contract is not activated..

2) So long as the contract for deed is recorded, the buyer also has rights to the property, including the right to refinance the contract for deed as if he were the owner and take ownership of the property. If the seller has a mortgage against the property, it is paid at this time..

Having said that I will add that real estate law varies from state to state. To date I've only done contract for deed refinances in the state of Missouri. I assume other states have similar ways of doing things, but I have no way of knowing that, nor do I really care..

I will also add that none of it is important. The only thing that's important is what I first told Disputer:.

1) It can be done..

2) In doing it, he can make money while helping this woman. Well, okay, I didn't actually say that, but I think it was implied..

3) He needs an attorney to help him do it...

You know what? You're right. I spoke without thinking, and I shouldn't have..

Hey now, you only got me on one. Let's keep this in perspective. ;)..

Mycroft.

Would you like for me to start showing you the other areas that you have directed someone towards a course of action that would be harmful to them? How about the post concerning inquirier not being harmful? I can name several others if you wish..

Fla-tan..

That sounds exciting. If you're willing to put forth the time, then so am I. Bring it on..

-Myke..

Mycroft.

I have decided to do just that, however I will do it in a seperate post..

Fla-tan..