 Owner finance w/ mortg (by NE [PA]) Jun 22, 2017 2:40 PM
 Owner finance w/ mortg (by Amy [MO]) Jun 22, 2017 2:48 PM
Owner finance w/ mortg (by NE [PA]) Jun 22, 2017 2:56 PM
Owner finance w/ mortg (by Barbara [VA]) Jun 22, 2017 3:08 PM
Owner finance w/ mortg (by William [AR]) Jun 22, 2017 4:15 PM
Owner finance w/ mortg (by razorback_tim [AR]) Jun 22, 2017 6:01 PM
Owner finance w/ mortg (by TA [CA]) Jun 23, 2017 12:12 AM
Owner finance w/ mortg (by Nicole [PA]) Jun 23, 2017 10:35 AM
Owner finance w/ mortg (by Kathy [GA]) Jun 26, 2017 8:01 PM
Owner finance w/ mortg (by #22 [MO]) Jun 26, 2017 8:59 PM
Owner finance w/ mortg (by NE [PA]) Posted on: Jun 22, 2017 2:40 PM
Message:
Can an owner of a multi unit finance me if he has a mortgage in his property? --74.46.xx.xx |
Owner finance w/ mortg (by Amy [MO]) Posted on: Jun 22, 2017 2:48 PM
Message:
I didn't think most mortgage co's allowed that. Usually note is due if they find out about it, so they probably wouldn't be able to record it. --136.32.xxx.xxx |
Owner finance w/ mortg (by NE [PA]) Posted on: Jun 22, 2017 2:56 PM
Message:
I think it was Lou Brown at the convention who said that if a property is bought in a trust, it does not allow the bank to activate that due on sale clause.
Any truth to that? --74.46.xx.xx |
Owner finance w/ mortg (by Barbara [VA]) Posted on: Jun 22, 2017 3:08 PM
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Excellent timing on this question...I am dealing with the same scenario. --68.107.xxx.x |
Owner finance w/ mortg (by William [AR]) Posted on: Jun 22, 2017 4:15 PM
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It depends on what type of note he has. If it conventional, he/she may very well be able to sell to you and owner finance. If its a FHA or government backed loan then something like a land trust will be needed. --64.250.xx.xxx |
Owner finance w/ mortg (by razorback_tim [AR]) Posted on: Jun 22, 2017 6:01 PM
Message:
The short answer is yes. The longer answer is that you need to understand a little more about the underlying note/mortgage and the seller so that you will know what risk you would be taking on and whether you would be willing to take that risk. There are several risks to consider. One is the due on sale clause. If the holder of the underlying mortgage decides to exercise the due on sale clause then you need to be prepared with back-up funding to pay it off. Other risks to consider are related to the seller. What if the seller doesn't make the payment on the first mortgage? What if the seller files bankruptcy? What if the seller dies? You have more counter-party risk in a transaction like this. I'm sure there are more, but that's what came to the top of my head. --70.178.x.xx |
Owner finance w/ mortg (by TA [CA]) Posted on: Jun 23, 2017 12:12 AM
Message:
A seller is not going to be able to give you a warranty deed and record it with the county if they still have a mortgage. That means the old bank can foreclose if the seller does not make their mortgage payment, or if they get divorced and the court gives half to their spouse, or if they have another debt the property can have a lien attached and eventually foreclose, or they can sell the house to someone else too. If your out of pocket costs are small it is something to consider still. --73.241.xxx.xxx |
Owner finance w/ mortg (by Nicole [PA]) Posted on: Jun 23, 2017 10:35 AM
Message:
read the Pennsylvania 1-4 Family Rider for the seller's mortgage. see what they are giving up ... and you are behind them in the eyes of the lender and the law.
no matter what anyone here tells you, the lender has the right to accelerate and call the mortgage due if the deed is transferred. Is it common? who really knows but you need to be aware you may be the first.
Seller issues with the IRS, revenue, child support, municipal liens... all come back to you (via seller's ownership interest).
real estate taxes owed on other properties owned in the same county by the seller can attach to this property.
Would I do it? Sure, in the right circumstances ... but you need to know and be very aware of what "might" happen. --72.95.xx.x |
Owner finance w/ mortg (by Kathy [GA]) Posted on: Jun 26, 2017 8:01 PM
Message:
We bought 2 Mobile Home Parks where the seller still owes a mortgage and they are financing us; one is with Bank of America and the other was with Magnolia State Bank (we sold this one). First of all, the Purchase Agreement states the bank must approve the loan assumption, so they won't call it due. Second, we pay the mortgage directly, so no worries that the seller stops paying. We have owned the one for 3 years now and have no problems. We do have a recorded deed. All of our properties (Parks) are in separate LLCs. --96.32.xx.xxx |
Owner finance w/ mortg (by #22 [MO]) Posted on: Jun 26, 2017 8:59 PM
Message:
Wraparound mortgage. Can be done.. trust might buy you time in trying to avoid due on sale clause.. if it's held in the llc, you might buy the llc from the owner --173.27.xxx.xx |
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