There are four primary frameworks available as real estate contract options for a transaction handled without an agent involved. Let’s examine each option to see which one makes sense for your specific home sale.
Frequently Asked Questions
Frequently Asked Questions about RealtyPact and Seller-Financed Real Estate
What’s In a ‘Real Estate Handshake Deal’?
Before any RealtyPact legal document can be created, the Seller and Buyer must reach a ‘real estate handshake deal’ on the basics of their transaction.
So exactly what terms must a Buyer and Seller agree upon to have that handshake?
Can a Home with an Existing Mortgage Be Sold by Land Contract?
In most traditional real estate sales transactions, the property being offered for sale will have an existing mortgage filed against it to secure the loan made to the Seller. The lender will have made this loan to the Seller when the Seller first purchased the property, usually for a 15- to 30-year period.
It is not unusual for the Seller to want to move or sell the property well before that 15 to 30 year mortgage is paid off in full, too.
So is a new sale of that mortgaged property by Land Contract a viable option?
Should a Property Owner Offer Seller Financing?
Say you own a nice, mid-priced home and have been trying to sell it FSBO for several months. And say that home is located in a market not fortunate enough to be on the “Top 10 Hottest Real Estate Cities in America” list.
You’ve had plenty of showings and several people have said they love the place, but you haven’t had any worthwhile conversations past that. Comments are positive about the property and the price, but no one has made an offer.
So what’s the next step?
How is a Real Estate Deed Transferred at Final Payment?
After months fulfilling the terms of a real estate purchase agreement under the Land Contract format, the Buyer is ready to submit the final payment to the Seller to complete the transaction.
With that payment, let’s examine the process for transferring the Deed to complete the transaction.
What is OWC?
In real estate listings, OWC stands for ‘Owner Will Carry’.
What is a Land Contract?
A Land Contract (also known as a Contract for Deed) is a Real Estate Purchase Agreement that has existed for decades. It allows a Buyer to purchase a property directly from a Seller by making some amount of down-payment then monthly payments over time. There is no bank or mortgage company involved.
What is Seller-Financed Real Estate?
Working together directly, a Buyer and Seller of real estate can create a legal contract with Seller-Financing to fund the transaction and avoid the costs and hassles of a bank-financed mortgage loan.
What Are the Steps in a Foreclosure Process?
If a Buyer and Seller enter into a RealtyPact under the Seller-Financed Mortgage Contract (SFMC) framework and the Buyer fails to make full payment as the contract requires, the remedy for the Seller to get paid in full is to file a foreclosure action.
The steps in a foreclosure case will vary from state to state, as each state has its own civil procedures and timing requirements. However, a foreclosure action will usually follow this process: