Whats it called when you sell your home to someone and if they miss payments then the house goes back to you?

Question

Whats it called when you sell your home to someone and if they miss payments then the house goes back to you?

Answer 1

I think you mean a purchase money mortgage.  You play bank, sell your house and the buyer pays you each month.

The problem is that if the buyer doesn't pay, you have to bring a foreclosure action just like a bank.  It's expensive, complicated, messy and it takes a long time.  Oh, and you really need a lawyer (a VERY exensive lawyer) to do it.

A purchase money mortgage is a really bad idea for a seller.

Answer 2

as my peer said, it, regardless whether a bank or a private financing;

if the "buyer" can't pay, the financier re-possesses-forecloses.

[if the seller is smart, on a seller's carrback, the seller will require

a quit claim pre-signed so that the seller does not have to go to

court.

Answer 3

Apparently you are carrying the mortgage for the house.  If the buyer defaults, you can file to reposses the porperty.  

Answer 4

land contract.

Answer 5

That is called forclosure

Answer 6

You actually don't sell it up front. I believe you are talking about a lease purchase.

The way it works is you have a signed contract and for a certain period of time usually 3-7 years the potential buyer pays rent and part of that rent goes to the towards closing costs or at closing shows a credit by the seller. Then when the contract comes do let’s say for our example 3 years the potential buyer must get a loan and close on the property. Then the sale is completed. The seller owns the house until the lease purchase is complete.

Now if you’re talking about a property you do not own and have been paying back taxes and they do not ever pay the delinquent taxes on the property, then sometimes you do get the property if the loan company does not come in and buy it at the auction. That's called tax lien credits and you earn a set interest rate on each credit.