I know a person that has a house under a contract for deed. He needs to move and stated that he's willing to walk away from the house. This seems like an opportunity to me if the numbers are right. How should I structure a deal like this? I don't know if I should partner with the current homeowner, or have the contract transferred to me, essentially transferring his equity to me, or what? I'm looking for someone to give me some direction here. Thanks!
We need to know what is the unpaid balance, total payoff etc on the loan. Also you should run a title report to make sure there are no other liens other than the contract for deed. Once you know where the house stands (does it have equity) then you can make an informed decision.
Most of the times when someone looks to walk away from a house they are upside down on it