Posted on: 21st Jul, 2005 03:20 am
Owner financing or carry back loan is useful because:
- It is a good source of income and helps to sell the property quickly as there is no fixed criteria for buying it.
- It becomes a good option when the property can't be financed by any means or when the owner has a lot of equity in his property but may not need the money paid by a lender at the closing of a mortgage.
- The rate of interest offered by a seller can be more reasonable than that offered by any other lender.
- If the prices in your area are high or if the sale price you aim at exceeds the estimated property-value, you can close the sale quickly by financing the entire part or a fraction of the purchase yourself.
- In case a buyer defaults, the deal ends. The seller can then keep whatever down payments and monthly installments the buyer has paid till that period, and sell the home again at its market price to another buyer.
- Since the seller can spread out gain for a long period or postpone all of it, therefore his tax liability is reduced.
Were would I go to get the paper work needed for owner carring the loan?
Hi Ray,
I have never heard of swapping check method. I would suggest you to contact an attorney and take his opinion in this matter. He will guide you in this case. As far as the owner finance agreement is concerned, you should contact an attorney and he will draft the agreement for both of you.
Take care
I have never heard of swapping check method. I would suggest you to contact an attorney and take his opinion in this matter. He will guide you in this case. As far as the owner finance agreement is concerned, you should contact an attorney and he will draft the agreement for both of you.
Take care
Do I have to go to an attorney to write the contract for the sale? I want to make sure I get paid and that the buyer pays me the monthly installment on time, lot rent, insurance and taxes.
Hi Margarita,
It will be better if you could contact an attorney and take his help in drafting the deed for sale. This will make sure that you get paid for the property that you're selling.
Thanks
It will be better if you could contact an attorney and take his help in drafting the deed for sale. This will make sure that you get paid for the property that you're selling.
Thanks
I the seller carries back a 120k and he is being paid in installments, when are is taxes do and what amount whould they be based on
as the buyer can the seller take out a second or third mortgage without the buyers knowledge, and does the buyer still need to have an appraisal of the property before buying from the seller.
Welcome chunk,
The seller can take out a second or a third mortgage before he sells off the property to someone else. the buyer should make sure that he appraises the property before buying it from the seller.
The seller can take out a second or a third mortgage before he sells off the property to someone else. the buyer should make sure that he appraises the property before buying it from the seller.
what if the owner has a second morgage that is considerablly higher than the appraised value. can the person who will be taking over the payments arrange an agreement for the value of the properity and leave the owner to pay the difference created by their second loan. if so does the bank need to know and how can this effect the person that is taking over the payments if the owner defaults on their portion.
Hi bab,
Before buying the property, the buyer should ask the present owner of the property to pay off the second loan in full. If the loan goes into default, then the lender will have the rights to foreclose the property and recover the debts. It is always better to buy a free and clear property rather than a property which has mortgages on it.
Before buying the property, the buyer should ask the present owner of the property to pay off the second loan in full. If the loan goes into default, then the lender will have the rights to foreclose the property and recover the debts. It is always better to buy a free and clear property rather than a property which has mortgages on it.
Hi I am very confused on this but can a property give enough equity to purchase another home possibly 2 more that when one defaults all three default?
Hi Ady,
If you have equity in your property, then you can use it in order to purchase a new property, even two properties. If you're unable to pay off the loan, then the lender will foreclose the property which has been used as a collateral in order to get the loan.
Thanks
If you have equity in your property, then you can use it in order to purchase a new property, even two properties. If you're unable to pay off the loan, then the lender will foreclose the property which has been used as a collateral in order to get the loan.
Thanks
Hi can anyone tell me if I am getting a good deal and how this works. I was told the owner would finance me with 8000.00 down and take over mortgage of 925.00 a month. Hoa fee 125.00 a month paying sellers bank and that house would be put in my name. Basically I'm just paying the mortgage to her bank with her interest rate I'm really scared she has realtor who is drawing up papers and lawyer and title company. I can not afford legal advise..... Help please
Hi Kristy,
To know all about owner financing, check out the given page: http://www.mortgagefit.com/owner-financing.html
Thanks
To know all about owner financing, check out the given page: http://www.mortgagefit.com/owner-financing.html
Thanks
Post Your Comment