Finding a solution for local Homeowners to sell in a tough market

Finding a solution for local Homeowners to sell in a tough market

Contractor · Maryville, TN · Member since 2026 · 1 post · 1 vote

I am a local investor looking to help homeowners sell in a tough market. Whether it be needed repairs, market volatility, etc. I have a solution to help, for example, an older couple move closer to their grandkids two states over but cannot move because they don't have a resource or knowledge to get them moved. I want to come alongside them and give them flexible options to be able to move worry-free. I want to buy their home on a contract-for-deed basis so that their home is still their home (until payments are made in full to fully purchase their). In the meantime, I would rent that home to a quality tenant, who would pay me cash-flow to make the deal work. Meanwhile, I would be willing to give the older couple a large lump sum of cash in order to be able to move worry-free and get established where they like as well as a good-will payment to make them sure I am serious. I would take care of all mortgage payments on their behalf so they don't have to as well as give them a monthly cash flow themselves.

I think the most ideal version of this is to assume their mortgage but I understand that is only likely to be possible with an FHA or USDA loan (or something similar to those).

Does this seem like something reasonable and doable? The whole idea is that solves a problem for them while maintaining a cash-flowing and appreciating asset. It appears to be a win-win for both parties in a tough market like this so they don't have to have the headache of trying to sell.

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  • Realtor · Memphis, Shelby County · Member since 2026 · 348 posts · 123 votes
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    Jordan, I love the heart behind this — helping a homeowner who needs to move without leaving them stuck is the kind of problem worth solving. The idea can work, but the details are where it gets tricky. A contract for deed and an assumption are very different tools: with an assumption, the lender has to approve it and the loan has to allow it, and most FHA and USDA loans have a due-on-sale clause that a transfer can trigger. A contract for deed can leave the seller on the hook for the mortgage while the buyer lives in the home, which is risky for both sides if it isn't documented properly. Before you talk to any sellers, sit down with a local real estate attorney who knows Tennessee seller financing and have them walk you through the paperwork. That one conversation will save you from building on shaky ground.

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