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That the seller does not own fully? We are looking to do an owner finance house, obviously becuase we do not qualify for a loan through normal channels. What i would like to know can a seller who still has a mortage on the property turn around and do an owner contract to us?
Also has anybody heard of people who do this for a living. Maybe someone who would be willing to buy a house that we pick out, then turn around and immidietly re-sell to us on an owner contract?
Just to answer the questions that i know will come The reason we are looking to do an OF is we are filing bankruptcy. We overspent not thinking that the market was going to take a dump. Now are ARM adjust always up and the house we are in went down in value. So we owe more than the house is worth.
We can come up with a sizable down payment and figured we would let the mortage company have this house (since they are so proud of it raising our ARM every 6 months), and start over. We thought long and hard about the bankruptcy thing but with the economy it doesnt make any sence to not use it to get out of the house.
What if the owner stops making payments on his home?
The bank will take the house, and will not honor your contract.
It is RARE that the 2nd or 3rd lien holders get to see any money after the home is sold.
I would look into repairing/restoring your credit, and reapplying for a mortgage.
Quote:
Originally Posted by TacomaTom
That the seller does not own fully? We are looking to do an owner finance house, obviously becuase we do not qualify for a loan through normal channels. What i would like to know can a seller who still has a mortage on the property turn around and do an owner contract to us?
Also has anybody heard of people who do this for a living. Maybe someone who would be willing to buy a house that we pick out, then turn around and immidietly re-sell to us on an owner contract?
Just to answer the questions that i know will come The reason we are looking to do an OF is we are filing bankruptcy. We overspent not thinking that the market was going to take a dump. Now are ARM adjust always up and the house we are in went down in value. So we owe more than the house is worth.
We can come up with a sizable down payment and figured we would let the mortage company have this house (since they are so proud of it raising our ARM every 6 months), and start over. We thought long and hard about the bankruptcy thing but with the economy it doesnt make any sence to not use it to get out of the house.
there are people who do this and may offer this for a place that isnt selling. you will still have to put down 10% or whatever they require. another thing is a friend of mine knows a guy who makes a living off "selling" his homes thru owner financing, taking a down payment and monthly payments with no intentions of ever selling the houses and targets people with bad credit and that will make late payments. 1 late payment he takes the house back. its all in the contract. make sure you still have an EXPERIENCED real estate agent and attourney look over any documents you sign for owner financing so you understand the stipulations.
but people are offering "OF" a lot right now, since places arent selling, its a way to at least get the mortgage paid.
you can also use a lease option, which is a lease with an option to buy. after 12-24 months depending on bank, you can "refinance into your actual purchase, thus using equity in the property and getting a better rate". make sure you also pay with checks and keep records of them.
Frankly, you're a terrible credit risk. I'd be wary that anyone who is willing to do an OF with you is (like brokerdave mentions) just hoping that you'll be late on a payment so that they can take the house back from you.
That the seller does not own fully? We are looking to do an owner finance house, obviously becuase we do not qualify for a loan through normal channels. What i would like to know can a seller who still has a mortage on the property turn around and do an owner contract to us?
Also has anybody heard of people who do this for a living. Maybe someone who would be willing to buy a house that we pick out, then turn around and immidietly re-sell to us on an owner contract?
Just to answer the questions that i know will come The reason we are looking to do an OF is we are filing bankruptcy. We overspent not thinking that the market was going to take a dump. Now are ARM adjust always up and the house we are in went down in value. So we owe more than the house is worth.
We can come up with a sizable down payment and figured we would let the mortage company have this house (since they are so proud of it raising our ARM every 6 months), and start over. We thought long and hard about the bankruptcy thing but with the economy it doesnt make any sence to not use it to get out of the house.
Anyway, thanks for any input.
Ok, here we go again... So you are filing bankruptcy to get out of your mortgage obligations yet you want to jump right back into another mortgage? (banging head against wall). And call me crazy, but if you are able to come up with a sizable downpayment, wouldn't you be obligated to put that towards the exisitng mortgage that you are trying to get out of?
That the seller does not own fully? We are looking to do an owner finance house, obviously becuase we do not qualify for a loan through normal channels. What i would like to know can a seller who still has a mortage on the property turn around and do an owner contract to us?
Also has anybody heard of people who do this for a living. Maybe someone who would be willing to buy a house that we pick out, then turn around and immidietly re-sell to us on an owner contract?
Just to answer the questions that i know will come The reason we are looking to do an OF is we are filing bankruptcy. We overspent not thinking that the market was going to take a dump. Now are ARM adjust always up and the house we are in went down in value. So we owe more than the house is worth.
We can come up with a sizable down payment and figured we would let the mortage company have this house (since they are so proud of it raising our ARM every 6 months), and start over. We thought long and hard about the bankruptcy thing but with the economy it doesnt make any sence to not use it to get out of the house.
Anyway, thanks for any input.
IMO you are just digging a deeper hole for yourself and your family.
A loss on paper is not a loss until realized (i.e. actually sell the house for less).
You are letting this economy rule your decisions ? If you don't NEED to sell then just live there and pay your mortgage.
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The reason we are looking to do an OF is we are filing bankruptcy. We overspent not thinking that the market was going to take a dump. Now are ARM adjust always up and the house we are in went down in value. So we owe more than the house is worth.
