Posted by RealmKnight on July 19, 2005 at 07:26:29:
I would structure this deal with a “wrap”. Say the home is worth $240K, she has $40K for downpay, balance of $200K. You give her a mort. for $200K, do everything through escrow (including your current loan), payments are made on time, no one is “unsecure”. Talk to you local title company, escrow company, and a real estate attorney. They should be able to give you the details.
How should I do seller financing? - Posted by Linda
Posted by Linda on July 18, 2005 at 16:59:25:
I have a renter who wants to buy my house. She has 40,000 to invest from the sale of her last house. I don’t know her situation on qualifying for a new loan. I would like to use this 40k on another investment.
My mortgage is 700 month with a balance of 148,000, interest only 30 jumbo loan. Her rent is 925 a month.
The comps are currently 225,000-259,000. I am new to all of this and need to know how to structure this deal properly and legally to avoid any extra costs or fees so it could be a win-win situation.
Do I need to contact the lender first, etc.? What is the time frame it usually takes to close on seller financing sales? What forms do I need?
Thanks
Re: How should I do seller financing? - Posted by zach
Posted by zach on July 19, 2005 at 01:04:40:
Say your value is $240k, then she puts the $40k down, why can’t she just go for a $200k loan with a lender? As long as she has decent credit and income her payment will be about the same (not including tax/ins.) and she now owns a home and will benefit off the equity in the future. I suppose you could offer $50k seller financing, or whatever you have in mind, with a cheap interest rate and she would only be paying a lender on your current balance ($150k) with a payment closer to your current one. I can certainly prequalify her for any loan to find out what she can afford.