Selling home (owner finance)

[bowhuntertex]

I don't think you can owner finance it if you already have a mortgage on it. You might be able to get the mortgage company approve it but I'm not sure.

Yes you can. I did mine that way. They paid me and I paid the mortgage company.

[bowhuntertex]

Following. I am in the process of doing this to and I am telling people 20% down and then they will cover my note and them in two years they need to finance on there own, I am stilling having to find a attorney to draw paper work up, but I know I have to make sure the house is deeded to them so there forth they will pay taxes and I will also need proof of insurance on house

this is exactly how I did mine.

[bloodtrailer28]

Yes you can. I did mine that way. They paid me and I paid the mortgage company.

10-4 I wasn't sure if you had to notify the mortgage company or not. We owed a little bit on our rental and was told you could do it but if the mortgage company found out there could be problems. We just paid off what we owed to avoid any problems.

[bowhuntertex]

10-4 I wasn't sure if you had to notify the mortgage company or not. We owed a little bit on our rental and was told you could do it but if the mortgage company found out there could be problems. We just paid off what we owed to avoid any problems.

you definitely have to let the mortgage company know and there is a lot of legal paperwork to have drafted up but it can be done. Would of been much easier if I had owned the house outright though.

[Stan R]

does it make a difference if you still have a mortgage on it in your name? and you are owner financing?

Most mortgage notes have a due on sale clause. I would get a good attorney.

[kingranch]

Hire an attorney to draw up a note and deed of trust between you and the buyer.

Use a title company to handle the transaction. Purchase the owners title policy. They will record the transfer deed along with the deed of trust from your attorney.

Wait for the payments to roll in, monthly, for whatever length of time you have agreed with the buyer. You do not have to finance 100%. Make the buyer bring some $$ to the table...20-30% at least.

That's all I got.

this and make sure to get a premium on the interest rate,,, most i have been involved with are higher than mkt rate.

[justintyme8303]

I don't think the above is correct ^^^ at least not how it was laid out by the title company that we used. I could be wrong though.If they defaulted we could take the house back. I believe it was 3 months of no payments is what we have in the contract.

We sold one of our rental properties owner financing it and it was pretty simple. We made them put 50% down and they haven't missed a payment yet.

Why did they agree to 50% did you give a killer rate?

I cant think of any bank that would not give a loan with 50% dw.

[justintyme8303]

http://www.lonestarlandlaw.com/owner_finance.html

[Darton]

Following. I am in the process of doing this to and I am telling people 20% down and then they will cover my note and them in two years they need to finance on there own, I am stilling having to find a attorney to draw paper work up, but I know I have to make sure the house is deeded to them so there forth they will pay taxes and I will also need proof of insurance on house

What you are talking about is dangerously close to a Lease Option! Which is illegal in Texas, so consult your Atty before hand

[8mpg]

Why did they agree to 50% did you give a killer rate?

I cant think of any bank that would not give a loan with 50% dw.

Some people have maxed out the number of conventional loans they can get. Usually 4. Then you need a portfolio loan or something unless you can get a private lender or owner finance.

[Diamond S]

I did not read all the replies, but I am doing it. I had a trusted Realestate agent draw up all the paperwork. Everything is golden so far. Had a clause put it that if they sell it before the term is up that they owe me X percent of the princeple balance on top on what is still owed. If they default, I get it back and can turn around and sell it again if I choose.

[bloodtrailer28]

Why did they agree to 50% did you give a killer rate?

I cant think of any bank that would not give a loan with 50% dw.

7% is what we did for them. I don't think they could qualify for a loan through a bank or didn't want to try. Their family owns a couple big Mexican food restaurants in the area. Took em a couple weeks and they showed up with a nice stack of cash.

[justintyme8303]

I did not read all the replies, but I am doing it. I had a trusted Realestate agent draw up all the paperwork. Everything is golden so far. Had a clause put it that if they sell it before the term is up that they owe me X percent of the princeple balance on top on what is still owed. If they default, I get it back and can turn around and sell it again if I choose.

Real Estate agents dont "draw up" paperwork that would be a lawyer. They just print the appropriate prewritten forms and fill in the blanks.

[justintyme8303]

7% is what we did for them. I don't think they could qualify for a loan through a bank or didn't want to try. Their family owns a couple big Mexican food restaurants in the area. Took em a couple weeks and they showed up with a nice stack of cash.

That being the case I'd be willing to bet it gets paid off sooner than terms.