Legal Question in Real Estate Law in California

Re: Taking over payments?

You are obligated to make mortgage payments. Even if you sign a deed, hand over the keys, receive a pile of money, you'll still be obligated to make mortgage payments. No document signed by the buyer will change that fact. The only way you can get off the hook is to satisfy the lender.

If the buyer gets a loan for the full sales price, the money will be used to (simply said) (1) satisfy YOUR lender and (2) pay the balance to you.

There are other ways of selling a house that will protect you, but the best way is to go through a standard escrow procedure whereby the buyer gets nothing until he has delivered the full purchase price (which is typically advanced by the BUYER's lender).

It is good that you are asking these questions. MANY people end up in a huge mess when they try to sidestep traditional safeguards.

Re: Taking over payments?

Mr. Berger is correct. Whenever someone suggests doing something different than the norm, you should question why and whether it is of any benefit to you. Basically, the buyer is offering to pay you the equity and you take a second deed of trust back with his paying the first directly but your being liable for it if he does not.