I am selling my home on a contract for deed. I owe $98,000 on a $100,000 mortgage loan. I am selling the home for $105,000 and asking for 7.65% down, which is what our interest rate is with the lender. Do I need to ask to run a credit check on my buyer and ask them to take out title insurance?
Unless you want to get screwed, or you want to try and sell your contract to a third party don’t bother with a credit check. There is no such thing as title insurance in Iowa. We have the Iowa Title Guaranty Fund and that’s run by the state. If a transfer takes place without a title opinion or title guaranty policy it’s at your or the buyer’s own risk.
Robert Luedeman
solo practitioner
2008 66th Street
Windsor Heights, IA 50324
You need to take a look at your mortgage (or have an attorney review it for you). Likely there is a due on sale clause in it. This means you cannot sell it on contract, or let someone take over your payments, without the lender’s written consent. And your lender probably will not give you written consent. Even if you are able to get your lender’s written consent, you should contact an attorney to guide you through this.
Thomas Moens
Moens Law Offices, Chartered
1523 52nd Avenue
Moline, IL 61265