How does someone do Owner Financing on a house?
140311
It may be possible to do it yourself if you're just trying to put a 2nd on, leaving the property in your name [and ultimate responsibility for the current loan], but you're playing with fire regardless. If you're in a 'deed of trust' state [rather than a 'mortgage' state], you should definitely contact an atty. Basically you would need a security instrument [either a mortgage note or deed of trust] and a promissory note [the repayment terms]. You'll need a warranty deed to convey the property if you're truly selling it--the title company may be able to help with the deed. Often, these forms can be obtained at 'old time' office supply stores, but completing them correctly is something else. However, your current mortgage probably has a 'due on sale' clause if you're doing a complete sale, which means that when ownership is transferred, the lender expects to be paid in full. The accounting [the payment split between principal and interest] changes with each payment, so it could be an accounting nightmare if mishandled. So you can see, there are a lot of technicalities here. I haven't even gotten into 'title work,' which the buyer may rightly be expecting, IF you're doing a real sale. You might want to consider a lease-option, which leaves you in ownership while the buyer makes monthly payments to you [and adding to the downpayment over time].
1119387
In short, the owner acts as the mortgage company.  You will usually not have to go through all the formal financial stuff (employment verification, income verification and justification) and get a standard mortgage.  You just make your payments to the owner instead of to a bank.\nThis is a good option if you are unable to get a conventional mortgage, if you have investment homes, or if your credit is so bad that a conventional mortgage rate would be ridiculously high.
825531
Ask your realtor. Ask the realtor representing the buyer and if you can, ask the owner themselves. \n\nThey are required to disclose any and all information regarding the property. If they do not, they can be held liable.
557999
Your mortgage broker is an idiot, you can't do this with the house you live in, but you certainly can with a residential property you buy as an investment.  You just go to a lawyer, and they will set up a deed (probably a quitclaim) to deed the property over to the LLC.  Then you (or the lawyer) have to file the deed at the courthouse.  \n\nAnyone who has a financial interest in the property (ie the bank) will have to agree to the change in writing, but just ask them, they may not care.  You can actually do this without telling the bank, but then they may find out on their own, and since the loan can be called with an owner change (this is technically an owner change) they will call the loan and put you in a bind, so check with the bank first but again they may not care.  \n\nThe bank could make you fill out a form or pay them more money or something.  In fact if you have a really good loan that they'd like to get off the books maybe they won't let you do it as an attempt to force you to refinance, but you'll just have to use your judgement on what to do here.\n\nNote, once the property is in the LLC you are still personally responsible for the mortgage.  So, if someone falls on your property and sues you, they can get the house (subject to the mortgage), but worst case you will still be liable for the mortgage.  Also if you put several properties in the LLC they can get all the other properties too, so you might want to set up a seperate LLC for every 3 properties or so (and make sure you have adequate insurance) but at least they can't take over your personal residence and assets if the properties are seperated into an LLC.  \n\nAlso be careful to very strictly seperate the LLC's business and your personal business.  If you have your own funds and the LLC's comingling the court may decide the LLC was an alter ego of yourself and not really a seperate entity.  Then there was no point in having a LLC, you are back on the hook for everything.\n\nFinally (didn't mean to write a book here, I just get going and can't stop - sorry) bear in mind that for future properties you will probably have to do the same kind of a deal ie put the property into a LLC's name, but your name will still be on the mortgage.  The bank will not lend you money based on the credit of a LLC with insufficent assets.  If the LLC has enough assets and money (and history) to buy it on its own, fine, but you are years away from there if you just started the LLC's.\n\nGood luck with it.
942381
One question..are they lending you the money or are they borrowing the money from a lender to help you buy the home?\n\nIf they are going to be the actual lenders, in other words, they have the cash to give you for the home, they do not have to be on the deed. If they are borrowing the money through a lender to help you buy the home then they will have to be on the deed.
472966
Instead of getting a loan and the other person trying to sell through an agent, your monthly rent or so much of your monthly rent goes to the owner or their mortgage. Once you have paid the amount in then the title is handed off to you.
875032
It's not entirely impossible. How's your credit? Have you or your spouse been working at a job for 2 years or more? With paying rent, can you provide rental verification? Have you ever claimed bankruptcy, if so how long ago? There are a lot of houses for sale with the owner offering to pay towards closing costs. And if you have good enough credit, you may be able to come into the loan without a down payment and also have the luxury of the seller contributions. Depending on the house you're interested in. There are a lot of questions behind that question, you just have to get started on the pre-qual process and then find out from there.
467232
You are refering to financing known as a Lot Loan.  LTV's on lots can go as high up as 80-85%.  A very common loan on a lot is a 3 year balloon.\n\nA way to get higher LTV's on property alone is to find out which banks will allow for seller held second mortgages.  Some banks will be more lenient then otheres.
759802
You should check your local classified adds & online adds to find sellers that will finance.  That way the person selling the home will be your "loan company".  Why would they sell you their house/and finance it if you have no money down and bad credit??  Because your monthly mortgage payments will be hundreds more than they could rent it for,and because they can easily forclose on you if you dont make the payments--Which some of them count on so be carefull.
209052
A real estate agent can find the owners of any property including vacant ones with just the address of the property.  Once you have the owners address, you can send them a letter stating you are interested in the property and are willing to pay off all taxes and liens (if its worth it of course)\n\nGood Luck!
735868
Ask everyone you know if they know of anyone looking to sell their home. Real Estate is a "how long you've been in the business" kind of thing.  It takes a while for people to think of you before they think of someone else. Part of that is achieved by farming, some is advertising, but most is referrals.  The more people you've done business with the more people that get referred.\n\n----\n\nYou need to base it on where you are located. The guy from Singapore has some great ideas, but some of them are not legal in the US.  You cannot pay a referral fee to anyone in the US unless they are a Licensed Real Estate Agent.  You can be prosecuted by the Department of Housing and Urban Development.\n\nThe other post where they suggest sending postcards etc to 300 to 500 households a month is called farming.  However, it usually takes six months to a couple years for farming to start paying off - and it can be expensive.  But it is a good tool.
171536
This is a tough one, but here is a suggestion.\n\nFirst I assume the owner has a loan that has a due on sale clause and cannot be assumed. Try these first if possible.\n\nNext thing if you work at it you can do this. It might be a long shot with each person, but you will eventually find someone willing. You need an investor. This isn’t something like finding one in a thousand like it might seem. A lot of people, at least 1 in 10 or 20 invest in real estate. So every community has a lot of investors. You are going to set up a deal that is too good for them to pass up and then show it to 25 people and one of them will go for it. Put an ad in the paper in the investor section something like invest in this lucrative real estate deal and you will have your phone ringing off the hook of people to try it out on.\n\nHere is what you want to happen. They will buy the house from the current owner, and they will lease option the house to you. Since the market is poor in that area you should be able to get a good deal. Keep in mind the reason they offered it to you first is so they can sell it for more than it is worth and avoid a commission on top of that. So any price they offer you will likely be way more than they need. Unless you are dealing with abnormally nice and fair people. \n\nSo lets assume the house is worth 90k to 100k for the illustration here. The range is if you want to sell it quick or let it sit a while on the market. Although the range might be larger the way you describe the area. My guess is the 18 months on the market is one house with a problem that the stubborn owner denies.\n\nFirst you need to be able to negotiate with the current owner. They can sell the house fast with an agent for 90k, of which 82k is what they get, 5400 commission plus 2600 taxes and closing fees. So you can offer 90k-5400 and it will be the same for them. They have to realize this is true so take time to explain it. If they agree that they would sell it for that then you would do best to put an offer in writing and write in the buyer as “your name and/or assigns”. The “and/or assigns” means you can assign the contract to someone else. The investor you will now search for. \n\nYou will need more time than average to close, which might trouble them(might need to raise the price a bit). Or, you may need to add something in the contract like this contract is void if the owner happens to find another buyer willing to pay at least $90k. This way they can still try to sell it while you put the deal together. They will get to keep your earnest money as well if you fail to buy the house, so put as little as they will take, but it does need to be at least $100 or so to be considered a legal contract. You might also add something like more earnest money, to the tune of $100 will be handed over each month to keep the contract good for up to 90 or even 120 days if they will go for it.\n\nNow you will try and find an investor. It has to be a good deal for them and of course you would like it to be a good one for you. Part of your pitch will be that you are trying to split the good fortune and that since you “found” the deal you want some of it. So they are going to buy the house for the contract price you negotiated of 84600. Then simultaneously lease option it to you to buy it for 100000 in three years, or however long you think it will take you to save up enough money and build up your good credit to buy a house. Presumably the house will be worth more than 100000 or you need to lower your price. Be sure this option contract gets recorded along with the other papers.\n\nThe lease part of a lease option works like this. You rent it for say 800 a month now, assuming this is market rent you will start renting it for 900 a month and 300 of that goes towards your down payment (all negotiable of course). So if you end up buying it you only pay 600 a month rent. If not then you paid 900. Good for both sides. You will also agree to handle all rep
1057091
What you are speaking of in the terms of owner financing is when you sell your house to someone and you become the bank.\n\nNow if you want to do something like this, you sell the property to the buyers find a closing agent, transfer the title and have a closing. The buyers then would pay you monthly payments. If what you owe on the first mortgage is the sales price then you will simple be the middle man between the mortgage company and the new owners.  \n\nIf the first mortgage is not the sale price, there is additional amount to be paid you have to establish a 2nd mortgag in your name. It would work something like this.  The first mortgage is \n$150,000, but the value of the property is $175,000. You would have a second mortgage of the difference of the first mortgage and the sale price, in the illustration it would be a $25,000 second in your favor.\n\nYou would figure out the payment on the 2nd mortgage add it to the first mortgage and that would be their monthly payment to you. This transaction is called a wrap around deed or an all inclusive deed of trust.\n\nIn this scenario, you would have to foreclose on the property if they fail to make the monthly payments to you.\n\nWhat you are getting into is more or less a lease with an option, or a land contract. You indicated you wanted to keep the deed in you name and kick them out if they fail to pay.\n\nYou have to figure out the best method you feel comfortable with.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
556857
so you have your own mortgage company?  I can probably help you steamline your process email me at taustin288@gmail.com and we can probably work out something
1036344
There is most likely a "due on sale" clause in your financing paperwork somewhere. Legally you can sell the property, however if the bank finds out that you sold it they will require that you pay off the balance of your loan immediately. Depending on the wording of the contract, there may also be an early pay off penalty. Your best bet is to talk to a real estate lawyer. It is very hard to owner finance a property in Texas if you still owe money on it. Over the last few years, a lot of people have abused the system and it has forced the law makers to crack down on the owner financed contracts.
928894
First, don't get forced into the builder's preferred financing unless the incentives make it worth your while! If you can, find a loan rep who will get you pre-approved somewhere. Yes, you do have to give the builder a deposit of some sort (or it's called a good faith deposit). Hopefully your loan rep will explain everything to you in plain language and through the whole process. You may want to contact a company "Home Loan Experts" who helped me a lot! They can shop for the best deal for you! Good luck!
244299
If someone has a mortgage on their house, the bank owns the house and has the deed.  They don't release the deed until the mortgage is paid.  It is very hard to buy real estate without you yourself getting a bank loan.  I think you have gotten some bad information.