Posted on: 16th Jun, 2008 07:56 am
I have a home I have been renting for the last 6 years and have not had great luck with renters. I inherited the house and it is paid for. I am tiring of being a landlord. The current renter has paid the rent on time for a year and is now asking to buy it with me providing the financing (owner financing). He is very motivated to buy it but does not have a down payment as he will need all his cash for closing. The deal he has offered is a 15 year note that within the first 5 years he must seek out bank financing to pay me off. If after 5 years he still can't get bank financing he must sell the house and pay me off. At the 5 year mark he will have about $25,000 in equity and this should help with getting bank financing. He has bad credit and does not qaulify for financing. I need help putting together the paperwork. I called my Lawyer and he said there are lots of sites on the internet that can help me. HELP
so your lawyer is passing the buck? i suggest you find a new lawyer. to go into this sort of transaction reliant on internet information is not especially sensible to me. is your lawyer a divorce lawyer? is that why he doesn't want to do the real estate part?
honestly, you need sound legal advice for this transaction. this is not to say you can't obtain some online, but i think the likelihood of a lawyer in your own hometown (or closeby) being helpful is far greater than wandering around on the web while not knowing what to look for.
i wish you well, dave. feel free to avail yourself of the advice you get on here as well. i suspect it will be better than what your lawyer gave you.
honestly, you need sound legal advice for this transaction. this is not to say you can't obtain some online, but i think the likelihood of a lawyer in your own hometown (or closeby) being helpful is far greater than wandering around on the web while not knowing what to look for.
i wish you well, dave. feel free to avail yourself of the advice you get on here as well. i suspect it will be better than what your lawyer gave you.
Not that it's necessary but I back up George's advice. What's with this attorney? You need very solid legal assistance with such a transaction. Consult a Real Estate attorney--you need a solid purchase agreement/contract to protect both of you and trusting to the internet for this kind of transaction is risky.
Hi Dave.
Welcome to the forum.
Owner financing or seller financing is a very useful means for both the seller and the buyer and I think owner financing suits your situation. But for the paper work you need solid help from an attorney. SO I agree with George and Lynnette that you should contact with a Real Estate attorney.
BTW you can have a clear idea about owner financing through the article on this topic.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Owner financing or seller financing is a very useful means for both the seller and the buyer and I think owner financing suits your situation. But for the paper work you need solid help from an attorney. SO I agree with George and Lynnette that you should contact with a Real Estate attorney.
BTW you can have a clear idea about owner financing through the article on this topic.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Thanks for your replies. My lawyer is not a real estate lawyer and is tied up in litigation for the next 2 weeks. He was going to look over what I found on the internet and make appropriate changes to it once things slowed down for him. Nevertheless, I agree that I need to go with a real estate lawyer. I will ask him to suggest one.
Hi guest,
I'm not sure as to whether your current lawyer will suggest a real estate attorney for you because he was initially there to assist you with whatever paperwork you could collect from the net. I feel it's best to ask your friends and relatives first.
Owner financing or seller financing requires legal paperwork which may vary from one transaction to another. And it's important to get the right paperwork done because there's no lender here as a third party who gets involved in the buying/selling transaction - it's between the seller (you) and the buyer.
God bless you.
Samantha
I'm not sure as to whether your current lawyer will suggest a real estate attorney for you because he was initially there to assist you with whatever paperwork you could collect from the net. I feel it's best to ask your friends and relatives first.
Owner financing or seller financing requires legal paperwork which may vary from one transaction to another. And it's important to get the right paperwork done because there's no lender here as a third party who gets involved in the buying/selling transaction - it's between the seller (you) and the buyer.
God bless you.
Samantha
Hi Dave,
I agree with what has been said by all posters. However, it sounds like you're tired with all the management (i.e. being a landlord) responsibilities associated with the house. So it does not make sense to me to owner finance. The reason I say this is because when you owner finance you still have to manage a loan. Worst case scenario if your borrower does not pay you will have to foreclose. Remember your borrower has bad credit for a reason in the past he/she has failed to make payments on debts on time.
Since, the home is paid off you may want to consider just selling the home and getting ride of the responsibility all together.
Hope this helps. :lol:
I agree with what has been said by all posters. However, it sounds like you're tired with all the management (i.e. being a landlord) responsibilities associated with the house. So it does not make sense to me to owner finance. The reason I say this is because when you owner finance you still have to manage a loan. Worst case scenario if your borrower does not pay you will have to foreclose. Remember your borrower has bad credit for a reason in the past he/she has failed to make payments on debts on time.
Since, the home is paid off you may want to consider just selling the home and getting ride of the responsibility all together.
Hope this helps. :lol:
