Legal Question in Real Estate Law in Texas

Owner Finance Do's & Dont's

I have a tenant that I am doing a 2-year owner finance deal with. The plan is he will put down 5% (9500) and and pay $1877 per month. The home will stay in my name and I will provide him a 1099 of the interest/taxes paid throughout the year. He is not able to get financed w/any other institution. He filed bankruptcy a couple years ago. My questions are:

1. When is he able to file bankruptcy again.

2. The promissory note is in his name, however is his wife able to file bankruptcy and tie up the house?

3. He recently asked to put the promissory note in his business name. His business is based in Deleware although he lives in Texas and if I have to sue him I'll have to go to Deleware to do so..is this correct?

4. Is is considered moral business practices to do a 2-year balloon on a 180k loan?

5. Is there any way he can go w/out paying for the house and I'm unable to sue him or evict him...?


Asked on 1/28/04, 9:21 am

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Owner Finance Do's & Dont's

The answers to all of your questions are not sweet and simple and will require explanation and qualifying. I recommend that you call an attorney, and discuss your options. ...and there are better options. If you would like to contact me, I will be glad to provide a complimentary phone consultation.

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Answered on 1/28/04, 11:33 am


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