Expert: Toni Yates - 7/8/2009

Question
A former landlord got so pleased with our responsibility on the payments and the care of the house that is offering me to buy the house from him at my own schedule.  He will authorize the bank to deal with me (allowing me to ask questions and receive answers), I will pay directly to the bank and when I am ready I will buy the house without paying him anything (he just want to get "rid" of the house debt).  Then I am kind of getting a house with 0 down.  I do not qualify for a mortgage right now due to taxes debts that I am currently paying.   How could I do a contract that protect my interests on this case.  No attorneys wants to take the case (Orlando, Florida), they refer me to Public notary.   What are your thoughts on this one?

Thank you

Answer
Hi Hector-
Thanks for your question. This is loaded! I would like to compliment you on being a model tenant but I am getting a lot of red flags here. First- have you had the house appraised? He may be offering to do this for you because the house is worth so much less than he paid for it? Second- if you pay the bank directly without a formal agreement and something happens to him- they could take the house for his estate. Unless Florida is different than Virginia, a notary Public cannot write up an agreement like this, in my opinion an attorney would have to do it. If an attorney won't do it, that's red flag number 3. If you are determined to do it, you should probably do a "Contract for Deed" or something similar and have it recorded at the courthouse in the county the house is in. Hope this helps and best of luck. Toni