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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1609
Location: MASSACHUSETTS
150.97 Dollars($)
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Post subject: |
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Hi,
Welcome to MortgageFit Forums.
You may go for lease with an option to purchase after 12 months and that is a normal process.
If she can arrange the financing then there will be no problem and if she can't then you can get it back.
But be very careful to prepare the contract papers and involve your lawyer in the process.
God bless you.
For MortgageFit,
Samantha
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Know how to compare lenders with mortgage booklet |
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nonymous
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0.10 Dollars($)
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Post subject: to blue |
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| Thanks so much for your responses. I am still confused about one issue. How does is it that when she exercises the option to buy after say 12 mos, she can get a refinance loan instead of an initial finance. I know that a refinance loan to value is based off the appraised value not the purchase price and that has a better outcome. When the seller makes a demand to the title company- what does that mean? There's just a notarized demand, that's it? Does seller have to money in hand to do this? |
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Mac_7
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Post subject: RE |
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Does seller have to money in hand to do this?
On this I think yes, the seller has to have some money. |
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jameshogg
Joined: 20 Dec 2005
Posts: 10148
Location: Nevada
941.94 Dollars($)
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Hi,
There are many lenders to treat a lease option, after 12 months, as refinance - as if you were on the deed.
Then it will be considered as a land contract or contract for deed refinance.
Seller's demand to the title company is a notarized demand and it requires money in hand to do this.
James |
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Beverly44
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Post subject: down payment |
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| in an owner finance can you put your down at the end of paying off the loan and keep making payments until the down is paid |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Post subject: RE: down payment in ownerfinancing |
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Hi,
The down payment is the cash amount which a buyer pays prior to purchasing the property. And, if he fails to pay the cash at the time of purchase, the seller includes the amount with the loan offered by him.
So, I don't think that the seller will accept such a proposal. Rather you can make a small amount of down payment or even a zero down payment and accept a higher rate of interest in return from the seller.
Thanks,
Caron. |
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Cynthia
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Post subject: Buyer Rights When Seller Sells Owner Carry Back Note |
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| I'm the buyer: can the terms/conditions of my loan change without my consent if the seller sells the loan? |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Hello Cynthia,
As far as I know, the seller may sell the note without the buyer's consent and he is given a notice about this change. But the terms and conditions cannot be changed without the buyer's consent. Even if the investor wants to make such changes, he should inform the buyer about that. |
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john_hig
Joined: 30 Nov 2007
Posts: 1
1.27 Dollars($)
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Post subject: capitol gains tax on owner sales |
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| was curious if my wife and I sell our house and carry the note , total profit is less than 500,00. are we still free from capito gains tax, even if we fincance the loan for 20 years ?? |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Hi john_hig,
Welcome to this forum.
I think for the married joint filers, homeowner can get exemption from capital gains taxes for up to $500K under the Taxpayer Relief Act of 1997. And your profit is less than $500K. So you can get the exemption.
Thanks,
Larry |
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twindle
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Post subject: owner fi... |
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Hi
I am about to purchase a house from an owner who is going to finance for me... he owes $225K, and we agreed on $265K selling price, with $15K down... he is refinancing his current loan, and going to carry the remainder as well... After reading all of the replies, I am thinking that if the owner still owes on the house, that this may not be a possibility? My email is tonywindle at gmail.com if anyone wishes to contact. THANKS! |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Hello Twindle,
Is the seller doing the refinance in his name? In that case, I don't think the lender will give his consent to transfer the ownership rights to you.
It will be better if you talk to the lender first and then decide. |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Post subject: RE: refinance house without ownership? |
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Hi Twindle,
Welcome to our forums.
What I understand from your post is, the seller will do an owner financing for an amount worth $265K and you'll pay $15K as down payment. Now, the seller has to repay $225K, which can be done using the sale price but right now he's not getting the entire price from you because you will be making that in installments. So, he wants to refinance the house in his name, is that ok?
But the problem is, if he refinances the loan in his name, the lender would want him to be on the title rather than allow him to sell off the home to you or anyone else. So, refinancing won't be the possibility here.
Another way out is, you assume the mortgage while buying the home, but then there will be two mortgages for you, one for the refinance loan and the other the owner financing (which you will perhaps treat as a mortgage and not a typical contract for deed). And, I don't know how easy it will be for you to manage two loans. Moreover, the lender will need to approve you before allowing you for the assumption.
Good luck!
_________________
Mortgage Shopping made easy with booklet |
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twindle
Guest
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Post subject: thanks |
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| Hi - thanks for the responses... looks like we are doing a wrap around & the escrow company is handling the paperwork and paying the lender. I guess the risk is if the lender finds out, and 'calls the mortgage' which I am not really sure what that means... cheers! |
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jameshogg
Joined: 20 Dec 2005
Posts: 10148
Location: Nevada
941.94 Dollars($)
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Post subject: RE: wrap around loan |
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Yes twindle, it looks almost like a wrap around loan. But if the lender comes to know of it, well then, he may call the loan due using the due on sale clause. So, there is risk involved here. But as long as you make the payments to the seller in time and the seller makes it in time to his lender, there's no chance that the seller's lender may demand immediate payment from the seller.
Thanks |
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