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Owner financing
Posted on 9/27/14 at 8:58 pm
Posted on 9/27/14 at 8:58 pm
Is this even possible if you still owe a significant amount on you mortgage?
We have a home, currently rented, listed for sale and was approached by a property management company about the possibility of owner financing.
We have not had much interest, I think mainly because our real estate agent overpriced it.
I am not sure our mortgage company would go for it.
If possible, does it make sense to do owner finance?
We have a home, currently rented, listed for sale and was approached by a property management company about the possibility of owner financing.
We have not had much interest, I think mainly because our real estate agent overpriced it.
I am not sure our mortgage company would go for it.
If possible, does it make sense to do owner finance?
3
Posted on 9/28/14 at 9:48 am to geauxtigers8482
Yes, it's probably possible. But you may have to do a contract for deed or other creative technique.
Why did your agent overprice it? After a house has been on the market, it tends to get stale. May want to relist it and start the days on the market counter over.
And, no your mortgage company would not like it if they found out.
Why did your agent overprice it? After a house has been on the market, it tends to get stale. May want to relist it and start the days on the market counter over.
And, no your mortgage company would not like it if they found out.
Posted on 9/28/14 at 10:54 am to ItzMe1972
I was under the impression that the mortgage company would have to know about it.
We are less than thrilled with our agent. She was pretty confident that it was priced right from the beginning, since then we have dropped the price a good amount without much action.
We started looking into renting again and were approached with a question as to if we would owner finance.
I knew nothing about this, but after some research, i am intrigued.
We won't go any lower than the current price so I am trying to decide between just renting it or exploring the owner finance option.
We've only owned the place for 5 years.
We are less than thrilled with our agent. She was pretty confident that it was priced right from the beginning, since then we have dropped the price a good amount without much action.
We started looking into renting again and were approached with a question as to if we would owner finance.
I knew nothing about this, but after some research, i am intrigued.
We won't go any lower than the current price so I am trying to decide between just renting it or exploring the owner finance option.
We've only owned the place for 5 years.
Posted on 9/28/14 at 2:02 pm to geauxtigers8482
Theres most likely a due on sale clause on your mortgage, if the bill is being paid, the bank may not enforce, if theres equity they may call the mortgage due. If you owner finance a primary residence you need pay attention to the new dodd frank BS. If this is the only one you do and have no intention of doing more than 1 in a year theres not much you have to do. I would strongly advise using a qualified attorney to make sure you do this right. You can still do Lease options too
Posted on 9/28/14 at 9:01 pm to geauxtigers8482
Pretty much any mortgage written in the last 10 years at least is going to have a due on sale clause that could be triggered by a bond for deed / wrap mortgage / owner finance situation. Generally, the bank finds out when the homeowner's insurance is switched to a dwelling-only policy that lists the new people as an additional insured.
The reality is, if all the terms of the mortgage are being met, does the bank really want to call a mortgage that is performing? Especially as they are still trying to deal with the overhang of foreclosures?
I would say it is a low risk, but still a risk.
The reality is, if all the terms of the mortgage are being met, does the bank really want to call a mortgage that is performing? Especially as they are still trying to deal with the overhang of foreclosures?
I would say it is a low risk, but still a risk.
Posted on 9/30/14 at 10:39 pm to geauxtigers8482
Why would you keep a mortgage and then loan someone else the money? I'm confused. I don't see how this would work for you. Seems like you would have to have a second behind the bank and I doubt they would like that.
Posted on 9/30/14 at 10:52 pm to bryso
Owner financing can command a higher sales price. If the market under traditional financing doesn't support the requested price, owner financing might. Becasuse people who need owner financing have few options, they are willing to pay more. Plus you can charge a higher rate of interest, etc.
The bank wouldn't care if the bond for deed was a second. And, I don't think it's possible to go prime over the mortgage. But, the bank's concern is that the whole situation may mean at some point, the mortgagee stops paying the mortgage. usually because the bond for deed / owner financing blows up.
The bank wouldn't care if the bond for deed was a second. And, I don't think it's possible to go prime over the mortgage. But, the bank's concern is that the whole situation may mean at some point, the mortgagee stops paying the mortgage. usually because the bond for deed / owner financing blows up.
Posted on 10/1/14 at 10:29 pm to LSUFanHouston
quote:
Owner financing can command a higher sales price. If the market under traditional financing doesn't support the requested price, owner financing might. Becasuse people who need owner financing have few options, they are willing to pay more. Plus you can charge a higher rate of interest, etc.
bingo
Posted on 10/2/14 at 7:50 am to Fat Bastard
Owner financing? Gamble much? 
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