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???
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.
@John Jackson is your man for the screwy laws in Tx , selling on a wrap is an idea done all the time in Tx
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)
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