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| The Real Estate Contract Forfeiture Process |
As explained in the Deed of Trust section, there are three primary ways to
foreclose on a property in Washington, although the term "foreclosure" has
it's own meaning. A property can be encumbered by a loan with a deed of
trust, a real estate contract, or a mortgage instrument of another kind.
While a Deed of Trust has an associated Promissory Note, a real estate
contract or land contract as it is sometimes called, does not. The Real
Estate Contract is one documents that includes both the obligation to pay
the debt and the security language, and it is recorded.
The Real Estate Contract can be forfeited more quickly than a Deed of
Trust may be foreclosed. Following is my checklist for your reading
pleasure.
foreclose on a property in Washington, although the term "foreclosure" has
it's own meaning. A property can be encumbered by a loan with a deed of
trust, a real estate contract, or a mortgage instrument of another kind.
While a Deed of Trust has an associated Promissory Note, a real estate
contract or land contract as it is sometimes called, does not. The Real
Estate Contract is one documents that includes both the obligation to pay
the debt and the security language, and it is recorded.
The Real Estate Contract can be forfeited more quickly than a Deed of
Trust may be foreclosed. Following is my checklist for your reading
pleasure.
Real Estate Contracts are a much small percentage of the market than
Deeds of Trust, and so the buying opportunities are not as prevalent. Buying
these contracts at a deep discount used to be a great way to get an
incredible return on your money. Now competition among contract buyers
has reduced the profit margin here. You can sell a Real Estate Contract for a
very small discount, maybe 3%, plus or minus depending upon terms,
compared to discounts as much as 30% 20 years ago. I worked for the
State's largest contract buyer at one time, Metropolitan Mortgage & Securities
Company of Spokane. Chuck Marunde
Deeds of Trust, and so the buying opportunities are not as prevalent. Buying
these contracts at a deep discount used to be a great way to get an
incredible return on your money. Now competition among contract buyers
has reduced the profit margin here. You can sell a Real Estate Contract for a
very small discount, maybe 3%, plus or minus depending upon terms,
compared to discounts as much as 30% 20 years ago. I worked for the
State's largest contract buyer at one time, Metropolitan Mortgage & Securities
Company of Spokane. Chuck Marunde