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How to Owner Finance?

Posted on: 22nd Feb, 2009 06:04 pm
I have a house with a morgage for $90,000 at 6.5%. I have someone that wants to buy my house for $120,000. I would like to finance the deal with them, but how? They can put $15,000 down at 9.5% amort. for 360mth with a balloon in 3yrs. I am located in Florida. So how do I set this up?
Hi Brian_kelley,

As you already have a mortgage on the property, it will be difficult for you to sell the property to another person. Before signing any kind of agreement with the buyer, you will have to contact the lender and inform him about the deal.

As far as setting up an agreement is concerned, you need to consult an attorney and take his help to draft the agreement.

Thanks
Posted on: 22nd Feb, 2009 07:45 pm
Why does the lender have to be notified?
Cant I put the property in a trust and finance thru the trust?
Lease option with a no-refund option and a % of the option coming of the sale price?
I am looking for creative was to do this. Can anyone help?
Posted on: 25th Feb, 2009 10:02 am
brian, when you sell a home you must pay off your mortgage. that's why you must inform your lender. go read your mortgage documents - it ought to be pretty clear.
Posted on: 25th Feb, 2009 10:59 am
"If the seller still owes money on the home you want to buy, a wraparound mortgage is a way to finance the purchase without the hassle of going through a lender. In a wraparound mortgage, you pay the seller the monthly payment on his or her existing mortgage, plus an additional payment to cover the balance of your purchase price for the home."

"Most of the time the lender never knows about the owner finance, or if they do they dont care because they are still geting paid. I have never heard of a company useing the due-on-sale clause"

Just found this on a finance site. Why cant this be done?
Posted on: 25th Feb, 2009 12:11 pm
huh?
that must be quite a "finance site."

who was this that said "never heard of a company using the due-on-sale clause"??? a loan officer, a bank president, an auto dealer, a wall street broker? oh..another choice...a fool?
Posted on: 25th Feb, 2009 12:15 pm
It was some real estate ivestment site. They said the only time they see banks use the clause is if the payments are not being made or if intrest rates go a lot higher then on the loan.
Posted on: 25th Feb, 2009 05:42 pm
again, i say "it must be quite a site." i find that to be ridiculous.
Posted on: 26th Feb, 2009 06:14 am
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