Posted on: 18th Apr, 2010 08:25 am
I have been current on owner financed loan for two years. I am now struggling to make ends meet. This is a vacation home and is also upside down about 40k. I have put 25,000 of my own money including renovation and downpayment. It is a 5yr balloon and don't think I will get refinanced. I need to know what I can do to be fair to the seller and myself. Will sellers take back owner financed properties or do they usually try to sue for the total mortgage owed?
Welcome rbfree,
As there is no equity in the property, you won't be able to refinance the loan. Lenders are not ready to refinance a mortgage if there is no equity in the property. If you stop paying the dues to the seller, then he/she will be able to take actions against you as per mentioned in the owner financing agreement. I would suggest you to have a word with your seller and check out if he is ready to take back the property.
As there is no equity in the property, you won't be able to refinance the loan. Lenders are not ready to refinance a mortgage if there is no equity in the property. If you stop paying the dues to the seller, then he/she will be able to take actions against you as per mentioned in the owner financing agreement. I would suggest you to have a word with your seller and check out if he is ready to take back the property.