Changing Title at Start of Seller Financing
Hi BP Universe -
I have a property I am in the process of selling. I’m planning to do seller financing on it and have had quite a bit of interest. I’ve had a buyer come forward with great terms that I’d like to move forward with. However they are asking for me to change the title into their name at the beginning of the contract and then have the rest of the contract secured by a mortgage note. So essentially I would have first lien position, but they would have the title.
Is this risky or dangerous?
The only downside I can see is if in the case they don’t make payments, I would have to go through a more complicated legal process, but would still have legal right against them.
Am I missing anything?
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#1 Foreclosures Contributor
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@William Montgomery
“Seller financing” can mean different things.....
-traditionally title changes hands, you receive a down payment, Note and Mtg.....yes, you are the lender.
-what you were thinking is a Land Contract/Contract for Deed.
As a buyer I would insist on #1....too much risk for the buyer otherwise.