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Where can I get owner finance legal docs?

i would like to sell my house owner finance but don't know where to find the forms

LJ's picture
LJ | Joined: October 1, 2008 08:43 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I would assume that you would hire an attorney to draw up the note for you. A title company or Title Attorney could prepare one for you. You want to make sure that you follow everything legally and make sure there are no holes in the agreement.

Cover your bases...hire someone to do it for you.

I would also assume you would need to own the property free and clear.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I owe $74,000 on my mortgage, I have my home for sale and someone
has asked if I would owner finance because they can't qualify for a loan
with a mortgage company and explained their reasons to me. But, I am
not sure how this works and even if I would want to consider this. Is it possible to do with a balance owed? Thanks for your help

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

also, is wrap around mortgage the same thing as owner finance?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am interested in doing owner financing. This house I am intersted in has had some repair work done on it. How should maintenance be on owner financing? Is there a contract that I could do to protect the buyer? :?:

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The owner of the home still owes on home about 10 more years but he says he will let us take over payments and the home will be ours when it is paid off. Can he do this since he still owes bank note and can you get leagal paper work for such agreemnet. Thanks

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eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

I do not believe that will work. Get an attorney involved.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am interested in a home and the seller will owner finance,he wants what is owed on the home which i believe is a fair price do we need to open a escrow or can we do this on our own,i cant get financed for 18 mths so it will be a short term owner finance,whats the best course of action ....Thanks

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

rick you will want to have an attorney work this out for you. you need to be protected, and the purchase of a home is way too complicated for you and he to do this on your own.

one of the things your lawyer will do for you is to ensure that there are no other liens on the property; after all, every lien must be paid in full in order for your title to be valid.

it sounds a little like it's too good to be true. be careful, no matter what.

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smithsara302's picture
smithsara302 | Joined: June 12, 2009 11:36 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hire attorney is better option

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

well...

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My brother owns the family home and he wishes to sale with owner finance. At what point do I get the deed to the house and do I need to hire my own lawyer to look over the paper work

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sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is a good option to hire a attonry to make sure you have every thign covered legally

This is good for both seller and buyer

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To leigh,

You should surely consult an attorney before signing on the owner financing agreement. It is important to get the agreement reviewed by your attorney to make sure that the terms of the agreement are not against your interests. You will get the full title to the property once the terms of the agreement are executed satisfactorily.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

lawyers ought to be thanking us....yes, if the thought even enters your mind that you might need an attorney - hire one!

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Leigh,
You could contact a title company to assit you with drawing up the documents (note, deed, sales contract, things like that). You can even hire a third party servicer to make a payments, witch will help with the accounting.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

a third party servicer? for what reason? to take the profit away from the deal to begin with? in a private matter such as this (person to person), i can't believe that hiring anyone to service such a loan would be worth the trouble. it's not even worth the internet space used to suggest it, i don't think.

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sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Agree with George

All ti is goign to do is make them spend more money

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is it legal to owner finance a home if we still owe on it? We have a home we owe $90,000 on. Our tenants would like to buy it for $140,000.

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Bryce,

I believe owner financing is possible even though there is an existing mortgage on the property. A rent-to-own option would be suitable in such a situation. The buyer can rent the property from you. You can make your mortgage payments using the monthly rent. Then after a certain period of time, the buyer can [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the property and get the full title to the property. You can consult a lawyer regarding this and get a rent-to-own agreement drafted by him.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i agree in part with your theory, jenkin, but not fully. we've seen instances in which people have rented with an option to purchase later on, with part of the rental payments being credited toward down payment money. however, the renter is not going to be able to refinance later on; in fact, the two parties would have to enter into a purchase and sales agreement, and the renter would then have to obtain a new mortgage for that purchase.

i agree that a lawyer is imperative, for all parties involved.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i am selling my house to a young lady who will be marrying my son next year. i want to owner finance for her. Can I do everything myself? I have my clear deed with me.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

yes, ann, but take heed that unless you know all the legalities involved, you'll need assistance, we firmly believe.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I fell in love with a house out of state, but being that I do not live in that state or work there, i am having a hard time getting the mortgage approved even though I have been qualified for the amount. What kind of owner financing can I ask the seller if she would consider doing for me? Thank you

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

If you are going to live out of the state and not going to occupy the property, it is going to be difficult for you to get financing for the house. You are not going to rent the property. So, a rent-to-own type of owner financing is not possible. I'm not sure if any type of owner financing will be suitable for your situation. If you can afford both your primary home and this new home, you can go for a mortgage and purchase the house as your second home. You can own the property without having to occupy it throughout the year.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

lisa, please elaborate on your situation so that our commentary can make sense for you.

as jenkin7 noted, you can consider this home to be a second home for financing purposes, but you'd obviously have to meet guidelines for any lender to consider that. if it's a property that you'd wish to use for investment, then the parameters of qualifying are much more difficult to meet.

as for owner financing, i'd say that this is a negotiable thing with your seller. the two of you would have to agree on the terms and conditions of such a mortgage - that's pretty much it.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

mother in law owns a house and she owes 10 years on it told me if i wanted to take the payments over when its paid for it would be mine. What kind of contract should be drawn up?

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eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

A purchase contract. Have an attorney draw up the contract.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Does the title company assist with writing up these offers?

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tink,

A title company can help you with writing up owner financing agreements. You can open an escrow with a title company or you can contact a real estate lawyer to take care of the paperwork required for the owner financing contract.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Our landlord wants to sell us her home which she owns free and clear. She is willing to owner finance. Can we take out a mtg or [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] for the down payment using the house? House value is $272,000, she is selling to us for $200,000 because it is very outdated and in need of lots of cosmetic repairs. We were going to see about getting a loan for $100,000 giving her $50,000 for a down and $150,000 owner finance.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi DebJo,

As the property is being owner financed, I don't think the lenders would be ready to give you a loan. Rather than going for owner financing, you can directly apply for a mortgage with the local lenders. Going through your financial situation and credit report, they would let you know whether or not you would get a loan.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i keep getting people calling about my house for sale all want owner financing I talked to the title company and they suggested i rent to own with a large down payment and part of the rent as a credit towards the balance after one year to buyer for down payment and closing cost is this a good idea i need to sell can't keep paying two mortgages

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome scully,

If you already have a mortgage on the property, then it won't be a good option to go for a owner finance. The lender may call the loan due immediately if he comes to know about it. As far as rent to own option is concerned, it would be a good option in my opinion.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We are purchasing a property through owner financing. What do we need to look for when we get to the closing table?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Charise,

You should sign a proper owner financing agreement with the seller. The agreement should mention the terms and conditions of the owner financing. You should check out whether the interest rate to pay off the loan is affordable for you. In case of any doubts, you should ask the seller for a clarification.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i own my property free and clear and am curious as to benefits to a realtor.
will they show an owner financed home and what do they get for it?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

It will be completely the realtor's discretion whether or not he will show an owner financed home. May be you will have to offer some kind of commission to him.

Thanks

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