Posted by Andy in Michigan on April 25, 2000 at 17:37:20:
Almost everyone I have ever seen or heard of says that it will, if the LC is properly recorded. Anyone else have a comment on this?
Buying primary residence from motivated seller - Posted by David
Posted by David on April 24, 2000 at 14:43:32:
I found a house my wife and I would like to buy and live in for our primary residence and the seller is motivated. The house is worth $325k and he owes $258k. He will sell for the $258 and has already retired to another state. His loan is qualifying assumable but we can not qualify due to our income. We live off our rental income and the taxes do not show income to support this mortgage. We have excellent credit. We plan to use the basement apartment for additional income. The seller must sell in order to purchase another house. How do I structure this deal to get him out of the $258k mortgage and where my wife and I can own the house? Any suggestions would help.
Re: Buying primary residence from motivated seller - Posted by Andy in Michigan
Posted by Andy in Michigan on April 25, 2000 at 06:41:10:
Okay, so I’m a little slow. How will the seller create a note (Land Contract) without triggering the Due-on Sale clause? Did I miss something here, or did you folks give this guy incomplete advice, or rather, opinions? I know there are several ways to get around the DOS, but your posts don’t even come anywhere close to advising on that.
Re: Buying primary residence from motivated seller - Posted by Trump
Posted by Trump on April 24, 2000 at 15:27:43:
The land contract is a good idea. It may also help the seller obtain his financing for a new home since you paying his mortgage will give him a better debt ratio.
Re: Buying primary residence from motivated seller - Posted by Tom-Pa
Posted by Tom-Pa on April 24, 2000 at 15:02:05:
One of the things you could do is buy the house on a Land Contract. After a year or two you could refinance and pay off the land contract. Just make sure that you make your payments by check, and keep a copy of them. By the seller selling on a Land contract, if your making his payment it would be a wash for your seller. It would be the same as if they had sold the property. Good Luck. Tom
Re: Buying primary residence from motivated seller - Posted by Scott SC
Posted by Scott SC on April 24, 2000 at 14:51:15:
Have him write a note to you (owner finance) for the property and then sell the note to a note investor. He can get 90% to 95% of the value and you get into the house with little down.
Re: Buying primary residence from motivated seller - Posted by Tom-Pa
Posted by Tom-Pa on April 25, 2000 at 12:35:10:
The Land Contract doesn’t trigger the DOS clause. I know alot of investors that use nothing but land contracts to sell properties. They have never had a problem with DOS. Tom