owner financing

Guest 0.10 Dollars($)

We have been leasing a home for over a year, we put 10,000. down and are now going to use the owner finance option.

How does this work? The seller wrote up a contract through a "friend" with a title company but it seems to me the bank holding the mortgage should be involved. What do I need to do, or what should I be looking for? What are the usal steps?

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

I would have your attorney take a look at it just to make sure the contract is not one sided. The title company will record the note and mortgage just like a mortgage company would. Instead of paying a mortgage company you are paying an individual.

Im not sure about a couple of the questions that you had about the bank being involved so please clarify a couple things. Is the owner financing just a portion of the financing? Is there a bank that will be holding a mortgage in addition to the owner financing? Please be more specific so that I can answer more clearly for you.

gmakerley · Posted: Mon Jan 14, 2008 9:35 am Post subject:

by all means, get legal representation here.

i agree, lisa, that the reference to the bank is confusing. we need more information on that to make a reasoned suggestion.

jheard · Posted: Mon Jan 14, 2008 1:34 pm Post subject:

The seller will sell you the property by executing a Warranty Deed to you. The seller's mortgage will have to be paid off by the seller. You will give the seller a Promissory Note secured by a Deed of Trust (mortgage) on the property. Pay the title company to handle the details for you.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi chaos,

Welcome to the forum.

Owner financing is when the owner finances his own property instead of the buyer and the buyer will pay a certain amount every month to the seller/owner.

As far as the contract is concerned I think you should check it by your attorney so that contract doesn't become one-sided.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest 0.10 Dollars($)

who will have to pay the INS/taxes

Guest 0.10 Dollars($)

Hello Tina.

The buyer will have to pay the Taxes and insurances in Owner financing/seller financing because after buying the house the buyer becomes the owner with the obligation to pay the previous owner.

brian1 · Posted: Thu Jul 24, 2008 7:52 pm Post subject:

Be careful
It is a common con for someone to sell owner financed when they have a mortgage on a property then stop making the payments and pocket your money. This leaves you sitting in a home when the sheriff comes knocking with no place to live and a timeline to move.

I just read this exact scenario on a different forum and the person was stuck in a really bad way.

Good Luck
Brian

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