Wrap mortgage or deed of trust?

[BottomLine]

What is the name of your state? Texas

I am selling a house owner financed for two years until my buyer brings in new financing. Since Contract for Deed isn't a favorable way to sell in Texas, I heard the next best thing is to sell on a wrap. However, as I understand, with wraps I would have to sign over the deed immediately upon execution of the wrap. I'd rather not grant the deed until the terms of my note are satisfied. What is the next best thing? Thanks.

 

[seniorjudge]

I think you would have to choose one or the other.

I would go with a deed and deed of trust. This is my own personal preference and others on this forum have different views.

My reasoning is that if the buyer defaults, you foreclose, sell the thing again and start all over.

 

[HomeGuru]

I think you would have to choose one or the other.

I would go with a deed and deed of trust. This is my own personal preference and others on this forum have different views.

My reasoning is that if the buyer defaults, you foreclose, sell the thing again and start all over.

**A: and with a contract for deed, you could do the same thing upon default.

 

[BottomLine]

As I understand, contract for deed (CFD) is an ideal instrument for owner financing deals but in Texas the laws re CFD are very strict so much so that I hear it is rarely used here. How difficult is it to do a Deed of Trust in Texas? What are the costs involved? Thanks.

 

[seniorjudge]

As I understand, contract for deed (CFD) is an ideal instrument for owner financing deals but in Texas the laws re CFD are very strict so much so that I hear it is rarely used here. How difficult is it to do a Deed of Trust in Texas? What are the costs involved? Thanks.

HG and I disagree on these things, but I emphasize that in Missouri it is exceptionally easy to do a non-judicial foreclosure of a deed of trust while a contract for deed must be judicially foreclosed.

I do NOT know how they do it in Texas or how much it costs.

You need to see a good real estate attorney in your area.