How do we mortgage our contract for deed home in Texas?

Hello there-



Any help is greatly appreciated. My husband and I entered in to a contract for deed on my deceased grandparent's home, owned by my Aunt and my Dad in 2008. We are 2 years in to the agreement and would like to buy our home with a more traditional mortgage to go ahead and give them the lump sum and get the home in our names. The contract was signed with the understanding that we would pursue this option within a year or so when we had a little more established credit (we were newlyweds and just moved to the United States at the time).



We have great credit and plenty of income and the home's purchase price makes for an extremely affordable and conservative first time home purchase. We have started the process with a few banks several times, and everyone generally seems to scratch their heads in bemusement. Here are my questions, if you dare :) :

- Is this a new purchase? Is it treated as a refinance (my understanding is no)?

- Do we cancel the agreement with my family first and then approach the bank?

- If so, how do we explain buying a home that we currently live in?



Just to add another level of complexity, my Dad is the WORST at paying checks in to the bank. We have always had money in the bank when we've written the checks, we've had the money when he's taken them out, but the bank says they still show late, regardless of the date they've been signed. If this is a new purchase, then I'm guessing that it's not a problem, but just thought I'd throw that out there. We have sent electronic checks from a while now, because at least then the money leaves our account the day it's supposed to, regardless of when he cashes it.



Any suggestions?

Thanks-

KrystinaHow do we mortgage our contract for deed home in Texas?
You would need to go to a lender and get a mortgage, not a refi.

It would be the same as if you were living in another place and found this place and wanted to buy it. You apply for a mortgage, either get approved or denied and enter into a sales agreement. Did you have a lawyer draw up this contract when you entered into this deal? Usually, a contract for deed will be like a sales contract only it is basically suspended until you can pay off the note.



What you want is to get a mortgage for whatever this house is selling for.