[Dortheia Henderson]

Dortheia Henderson

Maybe this will help some know the pitfalls of owner financing, so they can have an alternate plan.

Every since I’ve been in this business (7 years). I’ve held the note on some of my properties when I sold. I’ve gotten some back during that time but made money in the deal. Frankly it’s been pretty sweet…especially if I couldn’t sell the property quickly. When and if I got the properties back..I would just rinse and repeat. This was the days of lease options in Texas. New law states we can’t do them without owning the property….no wraps. At least that’s what my attorney says.

Since that law went into effect; I’ve owner financed as many of my properties that I couldn’t sell quickly.
With the economy like it is now. I’m finding that I’m getting too many back and can’t get loose from them quickly. Meaning I’m left with payments on the underlying loan, fixup/cleanup, taxes they didn’t pay, etc. AND Texas law that gives them 3-4 months before foreclosing.

Case in point. I had a buyer stay in a property for one year. I offered a deed in lieu. (All of my owner financed properties I go through an attorney) The buyer promised the attorney and me that he would pay the taxes and fix up what he tore up and sign the deed back. This has been going on since Oct. 1 and now the property will go to sale in Jan. 2010. (I’m in Texas)

SO…until I can figure a way to sell on a note, and protect MYSELF and not have to go through an attorney. I’ll just rent my property. It’s been WAY too costly on this last deal.

Now..all I can do is sit and wait. I can’t rent it, can’t sell it or owner finance this property again until AFTER it goes to the courthouse. I’m stuck. I know I will get the property back because it’s above market in our area …now.

The kicker here in Texas is NO…lease options, NO land contracts.

I think the more I get an attorney involved the more the deadbeat wins and I lose. Of course the attorney always gets paid. Don’t get me wrong I really like my attorney BUT I want to win some not the deadbeat. Seems they have all the rights and I have none.

If I could get my property back quickly, I would just chalk this up to doing business but when I have to wait …..too costly.

Until I find a way around this and protect ME. I’ll just rent my homes until things turn around.

Great $uccess,
Dee-Texas

[Bud]

Bud

Thanks Dee, I was thinking of moving to Texas from WA, but now I think I need to learn more and reconsider. How can I learn more about Texas laws now that you just told me no lease options and no wraps. Ouch. How about Lonnie deals, are they still safe? and S.A.F.E. debt and note laws, are these affecting lonnie deals? “The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“S.A.F.E. Act”).

Roy, God Bless America…
WA State