Posted on: 14th Apr, 2009 01:23 pm
Posted: Tue Apr 14, 2009 1:21 pm Post subject: I am currently owner financing my home...
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I am currently owner financing my home as we speak. We drew up a contract in Word and it states how much they put down, how much they pay a month and after a year they can take the amount they paid that year off the price of the home and either borrow that amount and pay off the mortgage that I have on it OR they can continue to keep paying my mortgage til they can get better credit and afford their own loan to help their credit. They are friends of mine and I work with one of them so yes its scary and all but with the economy the way it is...I would rather make them happy and keep them in it then for them to find something else and I be stuck with it again. Its a beautiful BIG home but just not for me!!
am I crazy? we sign this word document tomorrow that i typed up...any thing i should be aware of before i go thru with this???
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I am currently owner financing my home as we speak. We drew up a contract in Word and it states how much they put down, how much they pay a month and after a year they can take the amount they paid that year off the price of the home and either borrow that amount and pay off the mortgage that I have on it OR they can continue to keep paying my mortgage til they can get better credit and afford their own loan to help their credit. They are friends of mine and I work with one of them so yes its scary and all but with the economy the way it is...I would rather make them happy and keep them in it then for them to find something else and I be stuck with it again. Its a beautiful BIG home but just not for me!!
am I crazy? we sign this word document tomorrow that i typed up...any thing i should be aware of before i go thru with this???
okay...now i see that your other post is brand new and not tied to any of the others on that other forum. since i didn't respond to that in the way you wish, here i go on this post: your biggest risk, obviously, is if they don't make the payments at all. you're also at risk if they pay you late, which might cause you to pay your mortgage payments late.
i don't know if you made any allowance for the taxes on the house to be paid by them; and i'm assuming that you will continue to insure the house. make certain they understand that when the time comes, they'll have to get an insurance policy. of course, whoever their lender ends up being will also hammer that point home.
and of course, you'll run the risk of a loss of income that would make their making payments to you difficult. but you have laid out what you're doing pretty well, i think; and based on your having a notion of what it is you want to accomplish, i'm guessing that you'll have success.
i don't know if you made any allowance for the taxes on the house to be paid by them; and i'm assuming that you will continue to insure the house. make certain they understand that when the time comes, they'll have to get an insurance policy. of course, whoever their lender ends up being will also hammer that point home.
and of course, you'll run the risk of a loss of income that would make their making payments to you difficult. but you have laid out what you're doing pretty well, i think; and based on your having a notion of what it is you want to accomplish, i'm guessing that you'll have success.
Hi Snasteen,
I would consult with an attorney, this is a legal document and legally binding, so you want to make sure that you are covered 100% incase they default. You are just going to ask them to review it and make changes, not draw up a whole new contract, so they fee for the Attorney should be minimal.
I would consult with an attorney, this is a legal document and legally binding, so you want to make sure that you are covered 100% incase they default. You are just going to ask them to review it and make changes, not draw up a whole new contract, so they fee for the Attorney should be minimal.
