buying a home and land with owner financing what happens if owner does

sportsgirl381965 · Joined: 20 Oct 2008 Posts: 1 1.42 Dollars($)

buying a home and land with owner financing what happens if owner does...not pay his bank loan on said property

smithsussane · Posted: Mon Oct 20, 2008 7:49 pm Post subject:

Hi sportsgirl!

Welcome to forums!

If the owner does not pay his loans, the buyer has to assume the loan and pay it off. This is known as Assumption loan.

Feel free to ask if you have further queries.

Sussane

Niicss · Posted: Tue Oct 21, 2008 2:55 am Post subject:

Hi sportsgirl!

If the owner does not pay the bank loan, the bank will foreclose the property. It will be better if the buyer could assume the loan.

Thanks.

Caron

Hi Sportsgirl,

Does the bank know that the current owner is into an owner financing transaction? It is quite likely that the bank may call the loan due immediately. Just check out the loan doc about any penalty being mentioned in case any other other transaction is carried out on the property.

If the owner doesn't pay the bank loan, well then, the bank may foreclose and then more than the current owner, the buyer will be at risk because he'll lose the property. I'd like to ask you, have you already signed the documents for owner financing? Just see that the the bank is informed of such a transaction.

Good luck

Guest

I got my self into a mess with owner financing. owners owed bank 5 years longer then our contract stated for me to pay them. Thus more was owed then they agreed to sell it for. The bank said loan WAS NOT ASSUMABLE- so if I continued to pay them I needed alot more legal paperwork that still may not help in the end. If the sellers decided they were done with house I would lose my house, money invested and everything. Did I mention the large downpayment to the owners I would be out. I found all this out the week I was to pay the downpayment after I got suspicious and scared. IF they have a mortgage run.... either way have a exceptional lawyer

Posted: Mon Jan 26, 2009 2:14 am Post subject:

If you haven't yet given the downpayment, I would suggest you not to go for the property. There are chances that you may fall into trouble later on.

Guest

we want to buy this house, the current owner has just been put in jail for illegal business practices. I know the house will be going to foreclosure. How can I find out what lender the current owner has the loan with? and if I do find the bank, can I offer to buy the house from the bank for what is owed on the ?

jenkin7 · Posted: Tue May 12, 2009 12:50 am Post subject:

Hi kkymm,

This issue has been discussed on the following page:
http://www.mortgagefit.com/foreclosure/buyhouse-lender.html#95222

Guest

I am trying to sell a mobile home on a lot. I am willing to owner finance, can I owner finance if I still owe on the property and put the first person as first lein holder and me as second lein holder?

jerry · Posted: Tue Jun 09, 2009 5:45 am Post subject:

Hi Sheila,

If you go for a seller carry back mortgage, you can carry a second lien on the property and help the buyer in purchasing the home. But in case of a default by the buyer, you will be paid last as you are the second lien holder. In that case, the first lien holder would be paid first and if there remains any extra money, you will get that. This is why it is important that you check your buyer's credit thoroughly before you go for owner financing.

Thanks,

Jerry

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