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pattysprivate · Joined: 28 Oct 2009 Posts: 1 1.28 Dollars($)

I am trying to help a friend. She is trying to buy a home from someone who bought it in 2003. He "owner financed" it but has a mortgage on the home. Is this legal in Texas?

jenkin7 · Posted: Wed Oct 28, 2009 11:38 pm Post subject:

Hi Patty,

If there is a mortgage on the property, I believe you can go for rent-to-own type of owner financing. The buyer would be paying you a certain amount of rent every month as per a written agreement and the buyer would be legally bound to refinance the property in his name after a specific period of time. A portion of the monthly rent can be applied to the mortgage payments and part of it towards the purchase price. You can also take some money upfront, which will be applied to the purchase price once the terms of the agreement are executed.

gmakerley · Posted: Thu Oct 29, 2009 8:15 am Post subject:

yes, i can see a rent-to-own working in a case like this, but an outright mortgage couldn't be written.

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Is it legal to owner finance a home with a mortgage on it?