Posted on: 05th Jan, 2011 03:54 am
We recently did an owner purchase of a home and the person we're buying from has us sign the mortgage. He also signed a Warrenty Deed saying he transferred the ownership of the property to us for $10. There is no mention of the Mortgage in the Warrenty Deed.
Is this normal? What if we can't pay the Mortgage? IF he signed a Warrenty Deed over to us saying we purchased the property for $10 and no mention of a mortgage, doesn't that mean we already own the hosue free and clear?
Is this normal? What if we can't pay the Mortgage? IF he signed a Warrenty Deed over to us saying we purchased the property for $10 and no mention of a mortgage, doesn't that mean we already own the hosue free and clear?
Hi Mamawolf!
Welcome to forums!
A person can go for owner finance only when the property is free and clear. If there is an existing mortgage on the property, then the present owner cannot go for owner financing. You should contact the owner and check out if he had an existing mortgage on the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A person can go for owner finance only when the property is free and clear. If there is an existing mortgage on the property, then the present owner cannot go for owner financing. You should contact the owner and check out if he had an existing mortgage on the property.
Feel free to ask if you've further queries.
Sussane
The property IS free and clear.....the person we bought it from signed a Warrenty Deed to US, giving us the property in a warrenty deed that doesn't mention a mortgage
Welcome Mamwolf,
If a mortgage lender is now coming after you for the unpaid mortgage balance, in that case, you should contact the previous owner and ask him to pay off the balance dues resulting from that existing mortgage.
If a mortgage lender is now coming after you for the unpaid mortgage balance, in that case, you should contact the previous owner and ask him to pay off the balance dues resulting from that existing mortgage.