Kansas City Foreclosure Attorneys on Contracts for Deeds, Part 3 — A contract for deed lawyer in Kansas City may want to approach you about several components that make up a contract for deed versus a traditional mortgage.
Part three of this four-part series will explore the risks and realities, facts and features, the appeal to buyers, historical objections, risks, ways it promotes home ownership, and expert advice.
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Kansas City foreclosure attorneys know that it is best if their clients know some common law terminology to be adequately informed when discussing their cases. Last time we discussed the appeal to buyers and the historical objections in detail.
Our contract for contract for deed lawyer in Kansas City will continue this series by focusing on two more fundamental concepts. Continue reading to find out about contracts for deeds.
Kansas City Foreclosure Attorneys — Risks to Buyers
Kansas City foreclosure attorneys want to point out the significant risk to buyers: the seller’s ability to cancel a contract in just 60 days should the buyer default on the loan. This is so much shorter than when you go through a mortgage with a bank.
If you default on a loan with the bank, you have upwards of six months to get funds together before they begin to talk about foreclosure.
Another risk the contract for deed lawyer in Kansas City wants you to know about is a balloon payment. This is a payment due after monthly payments for a few years. Generally, the seller makes the buyer make a large payment, which is part of the contract for the deed.
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If the buyer cannot make the payment, the payment is considered a default of the loan, and after years of paying can go back to the seller.
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Another risk for buyers is that you are not renting the home, so you are responsible for any damage that happens to the home, even though you are in a rent-to-own situation. The seller also retains the title to the property during the contract’s lifetime.
In addition to all of this, no two contracts for deeds are the same. They do not have a standard beginning and ending process outlined. Hiring a contract for deed lawyer in Kansas City is the best idea due to the lack of clarity. Financial advisors often have difficulty with these because they differentiate widely from client to client.
Kansas City Foreclosure Attorneys — Promoting Home Ownership
Contract for deeds has their place as they do an excellent job of promoting homeownership among low-income or moderate-income homeowners. Depending on your state, there are many different programs to assist these buyers.
For example, they utilize a rural program in Minnesota to provide sustainable housing in declining neighborhoods. Programs like these often use this method to help people get into a home of their own.
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In the end, if there is an issue, there will always be positives and negatives to any contract you enter. There are significant risks to the buyer, but there is a place for these contracts in the low-income population.
This is the third part of this four-part series about contracts for deeds. As you can see, there are some risks and an appeal to buyers. If you have any questions contact our contract for deed lawyer in Kansas City.
Do you need Kansas City foreclosure attorneys? Real Estate law is a wide-ranging practice area. KC Foreclosure Law is your one-stop shop for favorable outcomes across the spectrum of real estate law. From filing a quit claim deed in Kansas City to Lease Option Foreclosure in Johnson County Kansas.
KC Foreclosure Law is here for you whether you need to transfer property ownership, litigate complex ownership disputes, evict a tenant, or even find yourself in the middle of a closing dispute. Our contract for deed lawyer in Kansas City is here to help you with everything from redemption rights in Kansas City to Lease Option Foreclosure in Johnson County Kansas.
Our attorneys frequently advise clients on foreclosure matters, including losing your home and working through forbearance and even Lease Option Foreclosure in Johnson County Kansas. If you find yourself at risk of losing your home call KC Foreclosure Law for a free consultation.
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Kansas City Foreclosure Attorneys
(913) 390-3188
