May not be so easy. You could purchase the place with a “subject to” arrangement. The deed would transfer to you, the mortgage would stay intact. The trouble is, will the note holder exercise the DOS clause? Time will tell. If you do the deal that way, the worst that could happen is they would call the loan in, and you would have to refinance. If it is an owner financed deal anyway, she probably has a higher than current rate, so a refi would lower your payment.
Make sure the insurance company is notified to add you as “additional Insured” to the policy.
Owner Finance…THIS IS AN EASY ONE!!! - Posted by Damon Johnson
Posted by Damon Johnson on February 28, 2002 at 14:55:51:
I appreciate any help someone can give me. I have a seller who can no longer make payments on her home. She has an existing owner finance aggreement for $500 a month with a remaining balance of $50,000 on the loan. I would like to get the property from her with an owner finance deal. She is willing. She just wants to get out of the payment obligation. How can I get the house from her via owner finance if she is in an owner finance contract for the same home? Is there a special contract that addresses this situation?
Re: Owner Finance…THIS IS AN EASY ONE!!! - Posted by JohnBoy
Posted by JohnBoy on February 28, 2002 at 18:14:49:
She purchase from the seller that financed her. The question is how did the seller finance her? Did the seller finance her by giving her a mortgage where title has transfered to her already OR did she buy on a contract where title is still in the seller’s name and doesn’t transfer until the contract is paid off?