Posted on: 31st Mar, 2010 05:33 am
If a person buys a home via owner finance , the owner stills has a mortgage and the owner fails to make the mortgage payments and the home is going into foreclosure and the owner wants to file bankruptcy . What are the purchaser's risk. The purchaser never missed a payment.
The owner has a mortgage and that mortgage was filed before your mortgage. I would guess you are out of luck. The original mortgage has the priority lien on the property.
I would guess the original mortgage lender does not even know anything about your mortgage. If they did know about it, they would have called their loan due immediately.
I would guess the original mortgage lender does not even know anything about your mortgage. If they did know about it, they would have called their loan due immediately.
and this is precisely what i don't get about this "owner financing" scheme we read so much about. how in the world can a buyer go into such a transaction without recognizing the inherent risk? ok, ok, i know that a buyer isn't necessarily all that sophisticated to know all the ins and outs of mortgage lending/home buying, etc. but that ought not to prevent someone from seeking out the advice of legal counsel.
let's keep this in mind too...legal counsel will, many times, offer a free consultation. in such a setting, it might be possible to obtain specific types of advice, such as "steer clear of owner financing" or "hire me or another lawyer if you plan to mess around with owner financing."
we've seen post after post from those who've undertaken this method to make a purchase, only to find that sometime later they've been taken to the cleaners, or - at least - they're unsure about what it all means.
please, whoever reads this...if you are contemplating owner financing and you know nothing about it...reconsider; visit a lawyer; read up as much as you can about the vagaries of that financing. you run the risk of losing every cent you pay, such as shown above, and you also run the risk of others filing liens on the property that you won't even be aware of and that could inhibit you from having a clear title once all is said and done.
owner financing, as expressed in this thread, is not for sane people.
let's keep this in mind too...legal counsel will, many times, offer a free consultation. in such a setting, it might be possible to obtain specific types of advice, such as "steer clear of owner financing" or "hire me or another lawyer if you plan to mess around with owner financing."
we've seen post after post from those who've undertaken this method to make a purchase, only to find that sometime later they've been taken to the cleaners, or - at least - they're unsure about what it all means.
please, whoever reads this...if you are contemplating owner financing and you know nothing about it...reconsider; visit a lawyer; read up as much as you can about the vagaries of that financing. you run the risk of losing every cent you pay, such as shown above, and you also run the risk of others filing liens on the property that you won't even be aware of and that could inhibit you from having a clear title once all is said and done.
owner financing, as expressed in this thread, is not for sane people.
