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Dwayne B.
Dwayne B., Attorney
Category: FL Real Estate
Satisfied Customers: 33398
Experience:  Began practicing law in 1992
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My home in Florida is 6 months behind on mortgage payments

Customer Question

My home in Florida is 6 months behind on mortgage payments and was recently sent to an attorney for foreclosure. The foreclosure was but on hold while Chase Bank evaluates my request for mortgage assistance application. Chase handles the mortgage for Fannie Mae.
I need to sell my home but it needs some work done to it to get a good price an so a buyer will have an easy time getting a mortgage to buy it. But I can't get approval for any loan at all because my credit is bad and income not great.
Well, I was wondering if it is possible for me to sell the house by contract for deed and get a down payment and finance the rest myself for the buyer and only pay off the primary mortgage but keep the home equity loan balance and continue to make the payments on it while receiving payments from the buyer until they finish their payments to me and I give them title to the deed.
Submitted: 1 year ago.
Category: FL Real Estate
Expert:  Dwayne B. replied 1 year ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

You could, but you would have to make it very clear to the buyers as to what liens existed, etc. and you would want to do it in writing so they can't later claim fraud. You would need to get a local lawyer to draft all the paperwork for you (above all don't use forms for this) and you also need to let the lawyer look over the paperwork for the mortgage and home equity loan and make sure that this won't violate your agreements with them or cause them to accelerate the notes and claim it's all due and payable at once.

This was something people did right before the big crash in 2007-2008 and many got into trouble because they didn't let the buyers know that they had the loans on the property and then they wouldn't use the money to pay off the notes so it is extremely important that a full disclosure be done.

If your question has been answered then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work.

Of course, please feel free to ask any follow up questions in this thread. I want to be sure that all of your questions are answered. In addition, once you issue your Positive Rating the question will lock open and no longer time out so you can come back to it anytime in the future if you think of any follow ups.

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