Rental Property Investor · Anchorage, AK · Member since 2013 · 50 posts · 8 votes
About 6 months ago I made my first deal by selling some raw land I owned. To lock in the price I wanted I offered to owner finance w/ 50% down. As I was reviewing the contracts I learned that if you owner finance in Tx if the buyers default I don't get the property back, it actually goes to auction. The title company lawyer and a different real estate attorney I spoke with both said its true. Does any one know any more details about this? I could very well not understand everything correctly.
Is it possible to get around this legally, one could "rent-to-own" or do something to where if the buyer defaults u can foreclose on the property and get it back vs. having to put it to auction??? What financing methods are available???
Investor · Vancouver, WA · Member since 2012 · 194 posts · 125 votes
12y
Rent to own and lease options are the same exact thing. In Texas, they have very screwy lease option laws; ie: after 6 months it must automatically convert into a form of owner financing. My suggestion is to structure it via a land sales contract. Talk to a real estate attorney in Texas as well... because Texas is unique when it comes to this kind of stuff.
Rental Property Investor · Anchorage, AK · Member since 2013 · 50 posts · 8 votes
12y
Thnx @Brian Gibbons & @Casey Carroll. I'll have to look into it for next time. It was an excellent learning experience, even my realtor didn't know this. (I have a new one by the way)