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Are Purchase Money Mortgages safe?

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jr3429 Joined: 02 Apr 2011 Posts: 1 1.33 Dollars($)	Posted: Sat Apr 02, 2011 7:52 am    Post subject: Are Purchase Money Mortgages safe? Like 0 Dislike 0 Found a condo in Sarasota but have not sold my house in Chgo. Owner has agreed to hold the mortgage. Property in Fla., is $500,000. We would put $150/$200 down at 5% interest for 2 possibly 3 years which would give us time to sell our house. Is this a good idea? My husband is apprehensive because he isn't familiar with this type of financing. Please advise.
brian1 Community Expert Joined: 14 Jun 2008 Posts: 448 Location: Northern California 15.61 Dollars($)	Posted: Sat Apr 02, 2011 10:10 am    Post subject: Like 0 Dislike 0 It is perfectly legitimate but for a transaction this large you should hire an attorney to review all contracts and agreements so that you know it is being done right and the owner will not be able to walk on you - I would also suggest that you arrange to pay any mortgage they have on the place directly so that you know it is being done - once they have your money my biggest concern would be for them to stop making payments and the bank to foreclose - if that happens you will be in a huge mess that you dont want to get into B _________________ Licensed Broker 50 states http://www.aimwithfocus.com Live Chat available Need quick advise email or PM Glad to help Pre-approvals www.applyonlinesecure.com
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Mon Apr 04, 2011 2:22 pm    Post subject: Private Mortgage Like 0 Dislike 0 By your question, are we to assume you do not qualify for a mortgage with a Lender on your condo purchase in Florida now? Your down payment is obviously large. Is your income not high enough to qualify carrying both mortgages and any other monthly debts on the credit report? The private mortgage is fine, especially if it has no balloon mortgage payments due in one or two years. If there is a balloon payment, minimum should be at least five years out for your safety. You already know, you need time to sell. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Mon Apr 04, 2011 2:26 pm    Post subject: Condo Like 0 Dislike 0 Also, when you do a mortgage with a Lender, the condominium property is underwritten by certain guidelines. If you get a private mortgage, no one is really checking out the condominium as far as what it needs to be eligible for a mortgage. For example, are more thas 15% of the unit owners over 30 days delinquent paying the monthly condo asociation dues? If they are, you may not be able to get a mortgage even after your house sells in Chicago. There are other condo requirements that must be met to get a mortgage. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278

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