Is owner financing real estate legal?

Owner financing was pretty much made illegal with the passing on July 30. 2010 of the S.A.F.E. act. In order for an owner to be able to offer financing they have to be licensed, but requirements vary depending on the State and the legislation they passed in order to comply with the S.A.F.E. act.

You should have a word with you attorney, gbarnett. The attorney will guide you what you should do in this matter.

The buyers went to the tax office to obtain homestead(in GA) They cannot obtain w/o warrenty deed.I have a downpayment,contract in place,and I own the home out-right/i.e. no bank involved.Reguardless,I keep the deed until last payment,right?

Welcome jill,

As far as I know, unless the payments are made in full, you shouldn't give away your property deed.

gees whiz if you didn't pay him don't you think he may needed the money to make his payments. you think he made out of money

What if we were never given a contract to sign but were given monthly statements that show the monthly house payment subtracted from the previous total owed with the new current balance owed? I have been paying for some time now and only owe $1000 but now the sellers are getting really hard to deal with. One of them showed up at our door drunk making threats of making us move but my payments are always made before the date shown due on our statements. Can he really make us move now that we're almost done paying for the house?

Hi Marie,

Your query has been replied to in the given page:
http://www.mortgagefit.com/know-how/about54344.html

Please take a look at it. I hope it will help you.

Ok... Long Story but NEED answer!!! PLEASE!!! We found a house for sale on craigslist. The ad said ten thousand, but when we called the seller changed it to 12,000. He stated in the ad that he was willing to do a contract for deed at $250.00 to move in $250.00 month for rent... I didn't want to be stuck paying for a house for a long time. So... we offered a $4,000.00 down payment for flexibility with monthly rent for the first couple months while my husband found employment because we were moving kinda far away he needed new job too. The seller agreed to this over the phone. but did not mention flexibility in the contract. *( I KNOW I should have pushed for it to be put in the contract before we sent the cashiers check, but I didn't)* I sent him a cashiers check for $4,000.00 and we moved in about the 27th of February. As of June first 2012 we were technically in default of our contract, because the flexibility was not mentioned in the contract. Spoke to the seller at noon today told him that my hubby had gotten a job as assistant manager at the local Dollar General store and he would have a payment before the end of the month, and he said that was fine. At around 6:30pm same day there was a person at my house looking at it because it was being advertised on craigslist for the total price of $4,000.00 cash up front. The contract states that he has to give me some kind of notice or something... Do I have ANY Rights here? I spoke with him and he said he would take it off craigslist, but what if he doesn't and what if he keeps trying to sell my house? What about the $4,000.00 dollars I already gave him? I know he gets to keep that but he has the house I already paid him 4k of 12k for sale on craigslist for 4k??? Is there ANYTHING I CAN DO???

Hi Stephiepike,

If your contract states that he has to give you some kind of notice before advertising or sending in buyers to look in for, then you may take legal actions against the concerned person. You should contact an attorney and take his opinion in this regard.

To avoid any kind of future conflict in dealing in the property it is necessary that You should take proper care before having a finance from the lender.

Is "subject to" considered a legitimate type of owner financing in California? Im upside down on my 2 mortgages and 3 months behind.
a company called sellfastusa claims they will buy my house and then take over with the banks after the closing. Im probably headed for foreclosure regardless if I dont do something quick, but I want to make sure this is legal and not some sort of scam. Ive done some research and it seems these guys are just an investment firm. They dont charge money like i saw some online foreclosure scams, but I want to make sure its legal in my state. Anybody?

Hi ranchero!

Welcome to forums!

Check out the background of the company before you sign any deal with them. There are loads of scam companies who take away the property and the home owners are left with the mortgage to pay off. Rather than going for this option, it will be better if you could contact the lender on your own and check out if he can help you in getting rid of the property.

Feel free to ask if you've further queries.

Sussane

Thanks Susan, Im going to have my attorney speak with their acquisition department to make sure its legit. I tried a loan mod, but Chase jerked me around for 4 months and then denied me. Short sale offer failed due to a bad appraisal. I just want the house out of my hair at this point. ive got a foreclosure sale date in 8 weeks. I will report back here what i find out, thanks again. great forum.

Welcome ranchero,

Let us know how things went!! :)

we got into an owner financed situation 3yrs ago. the asking price was 58k. we put 10k down and financed the rest at nearly 7% for 30 yrs. We recently fixed our credit and asked around to get the mortgage on it. We were told by the banks the property will only appraise at 21k. They will not give us what's left on the principal. Can we walk away? SHOULD we walk away? I'm positive the seller will not lower the price so we can get a traditional mortgage on it.