Help! I Need to Know If This Is Legal?

Please dont do this! I have been in the loan indust for over 6 yrs and I can see a screw job coming.Its not worth the paper its written on.You can even put your dog on title.So even if they did that means nothing.Its whos name is on the loan matters.They could take your money and default the loan and you are out of there.Work on getting your credit taken care of and please dont go to a credit repair either it will bite you later.

1 mom found this helpful

Are you working with a real estate agent? If not, get yourself a lawyer. It ALWAYS a good idea to work closely with a professional when dealing with these types of transactions. Good luck!

Call Cindy Feldman Marchant at Republic Title. Her number is ###-###-####. She is a great person and will be very helpful.

It seems to me that if at any point, they defaulted on their loan, you would be out your money and out of the house (and if they didn't tell you about the default, you might be put out on the pavement by a knock at the door one day). Why would they default on their loan if you're making monthly payments? Perhaps because they have other bills that they consider more pressing (such as the bill for the house they're actually living in). This deal is only as good as the people making the deal, and even then, unpredictable things can happen. If you and your hubby both have credit issues, also this is not going to do anything to improve your credit since it's not a bank loan or something like that (and you sure won't get a tax credit for interest). Why not rent a house? You would not be taking so much of a risk that way. I am happy renting because it gives me more flexibility. If you do try to purchase a seller-financed home, look for one that doesn't already have a mortgage on it.

I'd turn and run away fast. It doesn't sound legit to me. I'm with the others, get a real estate agent or a lawyer.

I wouldn't advise anything without talking to professionals because:

I had a neighbor do this. They paid for about 2 years and then the "seller" defaulted. They were kicked out and lost all invested money.
Now, whether they turned around and sued for that money back, I don't know. I don't know how they would ever get it back if "seller" didn't have it, and a judgement doesn't pay the bills.

First, This is a great forum to bounce ideas and opinions and I'm sure you'll get a lot of responses with this question.

HOWEVER.....I would speak with someone with legal expertise in this field. You need some sound legal advise here if you decide to go through with this deal.

Secondly, it sounds very weird to me. They want YOU to make a down payment which is minimal and then make monthly payments but the house won't be in your name? Forget about tax decuction if the title and loan is not in your name. No way would I do that.

I'd be searching for a better option on getting a home.

Contact an escrow company or a real estat lawyer. If you should do something like this, get it in writing and have the money through escrow go directly to the payment of the mortgage not to the owner. Otherwise like others said you could be out in the cold if the owners default. If you can wait it out and get a mortgage on your own do that. Good luck to you. The other S.