Posted by Stewart on July 23, 2003 at 18:23:00:
Is the $800 figure from total payments for the year divided by 12? What happens after month 24? Will you then have to give him $800 per month? I don’t see a conflict since you would have the deed. As long as the agreement spells out the method of payment for the seller’s loan it shouldn’t matter. Sending the seller the payment is one option, but maybe the fact it goes to him personally means you will have to make sure the payments are getting paid. I haven’t done one yet, but this might make me uncomfortable. You won’t have a record of it otherwise other than your payment to him. Seller gets no benefit is insisting loan is paid this way. The faster the loan gets paid down the better off you are. You could tell him you prefer (or make it company policy) that all monies are paid in the name of the mortgage company, either by your check or through an escrow account. If you don’t like his setup ask him what his concern is. If he is worried about it getting paid, I’d rather write a check to mortgage company and send to him for forwarding. The only plus I see in doing it his way is closing faster. If you had to wait until the MSP was canceled it might be a few or several weeks.
You could of course accomplish the same thing he is by paying an extra payment each year or add on a principal payment each month.