Recently found a property with owner financing. The owner sold the property to an individual and had a contract for deed. They ended up getting divorced. The wife hasn't paid him in 6 months and he offered to sell it to me if I could get her out (he is so CHEAP!)
I negotiated and offered the tenant cash for keys. They agreed to my terms and will be leaving in January. Now, I already agreed on a price, downpayment & contract is signed. How should the owner cancel the contract for deed? Since they left in a cash for keys scenario how should this be canceled properly so I can hold a clear title?
A CFD is a bit of a rare bird here, haven't seen one. Was it recorded? You'd have to read the actual agreement to see definitions of default, and I suppose how to cancel. I hope you have done a title search. One problem with a CFD is with the title remaining in the seller;s name, any lien/judgment He gets attaches to the property, don't know if recording it helps this. Have a local RE attorney review and advise.
Don't confuse this with being a mtg, not at all the same.