Is my atty just wrong?

[emoney]

A contract for deed is a very dangerious real estate plan. Most do not work out well. I almost had to sue to get my deed to my property. Thankfully I only had $6500 invested.
I would not put any money at risk that I could not afford to lose.
regards,
emoney

[emoney]

A contract for deed is a very dangerious real estate matter. I almost had to sue to get my deed. Only invest money that you can afford to lose is my suggestion.
regards,
emoney

[SubPrimeME]

A contract for deed is a very dangerious real estate plan. Most do not work out well. I almost had to sue to get my deed to my property. Thankfully I only had $6500 invested.
I would not put any money at risk that I could not afford to lose.
regards,
emoney

OK, but this is with my Wife's parents- whom we trust. So that's a non issue.

So back to my question- can we do this if there is a mortgage?

I am doing this in part to show no income, as a rent payment is capped, where a mortgage(contract to deed) has much more flexability...

[HHM]

OK my question now is- Can My Father-In-Law carry a mortgage on the property while providing a Contract to Deed for me? I have heard conflicting things regarding this, that the lendor would not like it if a contract for deed was going on while there is a mortgage on the property... Also something about my Father-In-Law will need to ensure that he pays the taxes and insurance under his name?

Thanks!!!

1. Is your father-in-law buying the house outright, or will he have a mortgage (I assume a mortgage is involved, but I want to make sure)

2. If there is a mortgage, your FIL will need to check to see if there is a due on sale or due on transfer clause and carefully read that provision. Reason being, these Contract for Deeds, Land Contracts, All Inclusive Truste Deeds, etc, are often considered a type of transfer that triggers "balance due" clauses of a mortgage agreement.

Honestly, you are probably better off simply doing a lease or lease option. At least with those documents, you eliminate any of the legal uncertainty. Like you said, if you "trust" them, you don't really need the Contract for Deed.

Regardless of what you do, because you are leasing from insiders (family), your transaction will be scrutinized in your BK. So, you will need to show rent money going to your in-laws (cancelled checks, and bank statements).

[SubPrimeME]

1. Is your father-in-law buying the house outright, or will he have a mortgage (I assume a mortgage is involved, but I want to make sure)

2. If there is a mortgage, your FIL will need to check to see if there is a due on sale or due on transfer clause and carefully read that provision. Reason being, these Contract for Deeds, Land Contracts, All Inclusive Truste Deeds, etc, are often considered a type of transfer that triggers "balance due" clauses of a mortgage agreement.

Honestly, you are probably better off simply doing a lease or lease option. At least with those documents, you eliminate any of the legal uncertainty. Like you said, if you "trust" them, you don't really need the Contract for Deed.

Regardless of what you do, because you are leasing from insiders (family), your transaction will be scrutinized in your BK. So, you will need to show rent money going to your in-laws (cancelled checks, and bank statements).

1- Yes there will be a mortgage

2- Can we show the 'lease' as the = of a mortgage payment on the schedule? With a Contract to Deed we can. So I just want to make sure the 'actual' payment, rather then what the Gov allows for.

And yes, we are quite aware of the BK and the need to show we are making those payments! That's the whole point of doing this!

Thanks!