OfflineI just had a quick question about owner financing and was hoping someone would be able to assist me in this question...
I have been talking with a homeowner who has recently been trying to sell his house.... But, has been very unsuccessful... He is very interested in doing an owner carry with me, but still owes the mortgage company 80% of the balance due... Would he be allowed to do this "owner carry" option with me if he were to write a contract we both liked??
Please help with any knowledge you may have on this matter and thank you very much in advance for all of your inputs on my post....
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As long as those payments are kept up to date and paid no one will care, what did you have in mind on how to work with this seller to make the deal work for both of you? Jim
jbischoff
Ive only done three owner finance deals and one had a mortgage on it, I made sure to have it through an escrow company to protect myself. You don't want to send your payment to the owner because if he stops making payments for whatever reason and keeps yours, you could be in bad shape, they will make sure all parties are paid on time and they keep good records.
One of the others was a land contract that was free and clear so I just went down to my county tax office and had it recorded so if we had a problem it was filed.
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Aaron
So..... if i'm getting this right, it sounds like the person with the most risk is the buyer, because he needs to assure the seller is in fact paying the mortgage with the monthly payment from the buyer.... Is this correct??
So Aaron.... How did you find an escrow company to do this type of deal?? or Will all escrow companies work this type of deal....
And James.... I am actually looking at this property for another investor friend of mine.... He plans on paying me a small commission to close on the deal, then he will pay me for finding a tenant while he fixes it up, and then last I will list for him and collect another commission when it sells.... So, it should be a pretty decent deal...
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"Whatever I will become will be what God has chosen for me." –Elvis Presley
Does anyone have or know where to get a downloadable template for this owner carry type transaction??
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"Whatever I will become will be what God has chosen for me." –Elvis Presley
This came to me by luck! I was renting this house, I was 24 im now 50 he offered to sell I said yes, this is also my first deal..
He had everything setup already, I did ask about escrow because a friend advised me to I didn't have a clue lol.
I can only say in Arkansas this was how I did it, other states you should do your homework before signing. Ask your Realtor what they use then you can use them over and over, better price
Eric NO.......GET this under contract and then another contract which is your assignment and send to buyer to sign and return to you then to title company!
DONT try to sell this without a Realtor licenses its ILLEGAL.......
You can sell your rights in the contract on your purchase agreement when you sign your name/and or assign.....
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Aaron
Yep got a good one DEAN :
If not PM me and I can send you the one I did with a land contract.
Owner carry.
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Aaron
I have done one transaction this way. The seller couldn't keep the property but couldn't sell it on the market because what they owed was just about market value. She sold it to us as "An exact wrap on the existing loan". The contract was written up this way and the seller just got a couple thousand to help her move. Then we sold the contract and got the assignment fee.
We sold it to a couple that had some down payment but couldn't get a regular loan because they had a previous foreclosure on their credit record.
All the payments go through a loan processing company so everyone knows when payments are made (or late). The title company wrote up all the of these documents. A more experienced investor helped me with this since it was my first transaction of this type.
You do have to be very clear with the seller that the loan will stay in their name, you have to be very up front and explain the whole transaction to them and in our state the title company makes them sign a bunch of disclosure documents. You need to make sure your title company knows how to do this and works these types of "creative" transactions.
Hope this helps.