You may face trouble if you sell off the property as you already have a mortgage on it. Check out your mortgage docs to see if there is a due on sale clause on it. In yes, then the lender can call the loan due immediately after you sell the property. Before taking any step, inform your lender and check what he has to say in this regard.
You can use a wrap around loan but you would have to check with your lender whether or not he would provide you with such a loan. It is an excellent way of working with an existing loan without taking out a second mortgage or refinancing the existing mortgage. _________________ Procrastination is the enemy of your financial sucess
If you sell the house, your mortgage becomes due. If you pay it off, then there is no problem. Generally, you cannot sell your house, still keep your old mortgage and use the new mortgage payments to you to pay off the old mortgage. However, all is negotiable. Contact your mortgage holder. _________________ Disclaimer: This is not legal advice and I am not your lawyer. The information provided in this forum is for discussion purposes only, and is no substitute for an in-person consultation with an attorney who can analyze all of the facts and determine how your state and local laws may apply to your specific situation.
jeff12 Guest
Posted: Sat Jul 04, 2009 8:07 pm Post subject: Who hold the house title?
If I use owner finance and wrap-around-loan, who hold the house title? me, new buyer or morgage? Who should buy house insurance? In case the house fires, can I get money back from insurance?
As far as the house title is concerned, it would remain in your name. However, as you would be taking a mortgage, the lender will hold the deed. Once you pay off the mortgage, you'll get the property deed. You can transfer the property to your buyer once he/she fulfills the terms and conditions of the owner financing agreement. As the property would be in your name, you should buy the house insurance. If the insurance is in your name, you'll get back the money if the house catches fire.
Sussane
jeff12 Guest
Posted: Sun Jul 05, 2009 9:07 pm Post subject:
Hi Sussane,
Sorry, I don't understand what you say. Do you really mean that I still hold the title and I should buy house insurance even we sold the house by owner finance and wrap-around-loan?
Jeff
Guest
Posted: Mon Jul 06, 2009 3:08 am Post subject:
You'll transfer the property solely to the buyer when the buyer pays off the complete price of the property. Till that point of time your name would appear on the title of the property. However, as you're taking a wrap-around loan for the same property, the lender would hold the title to the property.
yitzolee
