Legal Question in Real Estate Law in Oklahoma

Re: carrying the note

Thank you for your question. Really, I dont know where to start. Because you apparently still owe a mortgage company on your home, any attempt by you to sell the home either outright or contract for deed, or lease with option to purchase, will most likely trigger a "Due on Sale" clause in your mortgage. Meaning you could be required to come up with the entire amount due under the mortgage. What if they dont insure it or fail to make insurance or ad valorem tax payments. The house burns and you have nothing but the debt you owe to the mortgage company. Or, the county sells your property to someone because the taxes were not paid. Bad news. And that only skims the surface. In situations like this, people will oftern do a lease with option to purchase. If the purchasers are able to recover from their bad debt history, it will probably occur in 5-7 years. So why not lease with option to purchase with lease payments or some high percent to be considered downpayment at the time the option is exercised. At 5 years, the bad credit situation they had in the past may have dropped off of their credit report. Calculate the taxes and insurance and incorporate it into the lease payment each year. That way you take care of the payments. The downside is that you run the risk of having to foreclose on them instead of going through an eviction if they default since under Oklahoma law these types of transactions are treated the same as mortgages. Best advice? Pay an attorney to help you with this.