Posted on: 23rd Apr, 2010 10:24 am
I RECENTLY INHERITED MY MOM'S HOME WHICH IS PAID FOR. I'M THINKING OF SELLING WITH OWNER FINANCE IN AN EFFORT TO MAKE RETIREMENT MONEY SINCE I DON'T NEED THE MONEY FROM A DIRECT SELL AT THIS TIME. IF I DO OWNER FINANCE AND THE BUYER GOES INTO BANKRUPTCY DOES THE HOUSE JUST REVERT BACK TO ME. I DON'T STAND A CHANGE OF LOSING IT DO I?
Divins, if you handle your paperwork correctly, I can't see any way in which a bankruptcy by your buyer could harm you. What you'll need to do, of course, is to secure your loan with a mortgage; that would give you the right to foreclose if the borrower defaulted. Keep in mind that bankruptcy would put a huge delay in any foreclosure action, of course.
If you have fears in getting involved in owner financing, you might want to re-think the proposition. At the very least, you'll need to coordinate everything with legal counsel so as to protect yourself to the utmost.
If you have fears in getting involved in owner financing, you might want to re-think the proposition. At the very least, you'll need to coordinate everything with legal counsel so as to protect yourself to the utmost.