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Seller financing

Posted on: 03rd Feb, 2009 01:04 am
I have been reading for about an hour here about seller financing. I have found only replys for the buyer.

I'm the seller who started out as seller will finance. The deal has gone sour. I'm wanting to back out. At this point we have no SIGNED legal contract at this time. The buyer has been in the house since Sept. We have been in the process of negotiating the terms and we can not come to terms.

I have been looking for an attorney in the area. It's a small area so attorneys are limited in numbers. After many phone calls being told they were booked for a month or so and all those who didn't handle these type of deals.
I'm looking at 235.00 an hour just for the phone call. But they will require a 5,000 retainer fee.

I paid over 400.00 to attorney just to get advice on making the contract. I really found out little from the attorney. my knowledge is from searching the internet.

These type of deals are HIGH risk for the seller. I'm backing out because of the person's first 2 payments were late. but she don't want to be accountable for any liens that get placed against the property. EVEN if she is living in the house as the owner right this moment. She can't afford to do the closing so I agreed to hold the title.

Any time you buy a house, those liens become your responsiblity as the buyer. But in this buyer's mind, because the title is in my name she's not responsible for the liens.

Any one have knowledge what I'm look at in backing out?

I have no rental agreement.
She moved in as buyer with No down payment
At this point she has only paid 4,000 by payments of 800.00 a month
I'm crossing into an area of a squater in the house , which is worst then a renter who is behind in payments

Is this the normal type of cost you have to pay 5,000 in these kind of seller will carry type of deals if you want to back out? I am scared to death. This house is fully paid for, everything currant no liens . I have 160,000 to loose here, where at this point the only money she has invested at this point is 4,000 - 800.00 a month payment.

The thought of dealing with a person who openly tells you " I'm nervous about sending you my payments. Because my pay day is the same day as my payment due date. Nor does she feel it's fair to be penalized for the mail being late if I get a late payment. Then she don't want to be responsible for paying for the liens against the property if they should happen.

The attorney I did pay 400.00 - told me it's simple just write out a contract to the terms you want and both of you agree to it. She didn't like the terms and re-typed a new contract removing the lien part. This buyer comes to the table with nothing to negotiate with.

What a FOOL I am to be in this kind of mess. The rest of this is:
Selling price is 160,000
payments 800.00
her first month free so she can settle in
No interest is being charged
Savings of about 200,000 in interest
This type of deal you would think a person would be throwing their payments at me and chasing me down to lock me in on the deal
16 year and 6 months
Oh forgot I also paid the first year for her the house insurance and taxes

Now we all know, I don't belong in the real estate business :oops:
I am in this mess because I needed to get my elderly mom out of the area for medical reason. I took on a new mortgage really wanted to sell that house which is 400 miles away and in the next state over. Trying to sell the house from a distance was hard. The house was shown once in 3 months by the agent. The weeds grew to be about 7 ft tall. I didn't know those weeds to get that big, I pulled them when they was about 10 inches at best. My only rush for this mess is to be free of the responsiblity. The insurance cancelled me out because it was emptied.
Hi bgina,

Welcome to the forums.

I can understand what you're going through right at this moment. I personally feel you should back out of this contract because first and foremost the buyer isn't paying you. Moreover, she doesn't want you to place any lien if she doesn't pay. Then how does one recover his money?

What I feel is, you should have drafted the legal contract prior to giving away property to the buyer. Since there's no legal contract, you can't file a lawsuit against her. That's the reason she's not making payments. The buyer feels that she'll get away with the situation just because she hasn't signed on a legal doc. Just have a straight talk with her saying that you can't continue this way and ask her to leave the house.

Take care
Posted on: 03rd Feb, 2009 01:40 am
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