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 pharris21
Joined: 20 Nov 2008
Posts: 1
1.64 Dollars($)
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 Posted: Thu Nov 20, 2008 3:22 pm Post subject: being the lender |
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we own a house in florida. the renter wants to buy it and asked us if we could assume the mortgage.
we do not own the house free and clear yet, as we still own part ot the mortgage.
can we continue making the mortgage payments and create a secondary loan where the tenant makes payments to us toward buying the house?
or Do we have to pay off our original mortgage or transfer it to him? |
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smithsussane
Joined: 18 Sep 2008
Posts: 1364
Location: Alaska
169.51 Dollars($)
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| Posted: Thu Nov 20, 2008 10:23 pm Post subject: |
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Hi pharris!
Welcome to forums!
The lender will never let you to assume the loan when you sell the property to your tenant. They will ask the new owner to refinance it. Or the lender may even call the mortgage due at that very moment.
So it is your tenant who will have to assume or refinance the loan. Or you may even pay off the mortgage and then transfer the property.
Feel free to ask if you have further queries.
Sussane |
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pharris
Guest
0.10 Dollars($)
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| Posted: Fri Nov 21, 2008 8:42 am Post subject: being the lender |
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Hi Sussane.
Thank you for your reply.
When looking back at my question I realized that I probably did not explained this correctly.
The idea is the tenant will pay us monthly (with some type of legal document)
May be "Rent to own" kind of agreement??
When he is done (Some years) then we transfer the ownership to him. In the meantime we continue paying the balance of our mortgage to our bank as usual.
Is that possible? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 1634
Location: bloomfield, ct
101.81 Dollars($)
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| Posted: Fri Nov 21, 2008 9:46 am Post subject: |
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pharris, what you've described is a pretty good facsimile of a "rent to own" agreement. typically, in order for a tenant to have his rent payments applied as down payment when he seeks a mortgage, the lender would want to know that there was a payment being made that was above actual market rent; and that payment would be considered in your tenant's favor as down payment money.
yes, what you have asked is possible. how you structure this is up to you, but it would be to your tenant's benefit to do the above. by that i mean this: if market rent is $900 per month and he pays you $1000, then that extra $100 would be considered by the lender to be down payment money, and not just plain old rent. you'd need to get an analysis done to determine what market rents are in your area if you chose to pursue this.
_________________
George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444 |
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psharris
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0.10 Dollars($)
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| Posted: Fri Nov 21, 2008 10:53 am Post subject: |
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| Thank you George |
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