How does owner financing of a home work?
400378
The owner provides the financing rather than a bank.  The benefit to the owner is that they get to keep all the accrued interest as well as title to the home until it is paid off.  The benefit to the buyer is they only have to convince the owner they are credit worthy- not a bank.
173305
It works pretty much the same way as if you're buying from a private party. My husband and I went through a relocation program when we sold our home. Basically, we technically sold the house to the relo company and then they sell it. But that's just technicallity..we were still involved. My husband and I OKed or turned down offers (with input from our relo person). Relo companies will not ask for more than the house is worth, but they do turn down some buyers that don't qualify for a loan (or something like that). If you're going through a reputable bank for your loan, you shouldn't have a problem.\n\nAlso your first answerer is right. The realtor for the relo company is paid lower than usual. How this affects the you, the buyer, who knows. :-)\n\nAnother thing, buying a house from a relo company will usually be faster. They are on a strict timeline, so this may be a plus for you (or not).
908052
Good  luck, unlike the others here, I am not oppose to owners selling their own property.\n\nAs far as the documents you will need, you may draw up a contract on anypaper you have available.  The important items you need to have on this document is a date, the total sell price of the property, how much if anything the buyers are putting down on the property. After you do this the remaining amount left now is the amount of  money they will be required to borrow to complete the process.  You need to put a date down in which you would like to close this transaction. Allow enough time for the buyers to qualify and get a loan.  You might or might not close on this date. Not to worry very seldom do real estate transactions close on the date we would like.\n\nYou should also put in this contract who will pay closing cost, which is normally divided between the seller and buyer, though there are times when the seller might pay this. This is a not a huge amount of cash, check with the closing agent when you secure one about the closing cost and how much they are.\n \nNow you should call an escrow closing agent, some states use lawyers. Take your contract, that is signed by all parties to the transaction both husbands and wifes and anyone else involved in the transaction., to this excrow closing agent. If you are in an escrow state, call a title company, they will do all the legal work that needs to be done. You will find a title company in your local telephone book. All do the same work and are about equal so just select one.\n\nThe buyers or yourself should now contact a "Mortgage Broker" to secure a loan to pay for the portion that left after the down payment.  Their mortgage broker will set up an appraisal of the property with an appraisal that they are accustom to using.\n\nThere will be other things required of you as well as the buyer so be prepared for the long haul, just keep in mind you are now dealing with the experts of the business when you get a title company,mortgage broker,closing agent. They are not gonna do anything to lose their license.\n\nIf the buyer want to hire a house inspector let them do so. Make sure that you tell them of any items you know that need repairing,make a deal with them to get this done, sometimes this will require you to accept a lower sales price in ordere to accomudate the buyer, do so and move on.\n\nI admire you for doing this transaction on your own there are no deep dark secrets to selling your home.  The only ones that holla about people selling their homes themselves are the ones that are losing the sale commission.\n\nIf you have any questions ask them of the mortgage broker, escrow closing agent or the title company, they will assist you in the closing and insure that things are done according to federal  state laws.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
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.
658183
A typical refinancing goes like this.\n\nHomeowner has a mortgage with a 6% interest rate, and he still owes $200,000.  Nowadays, interest rates are lower, so he gets a refinance company to loan him the same $200,000, but with a 5% interest rate.   Homeowner takes the money and pays off the first mortgage, and now owes the same amount of money, but with a lower interest rate.  Homeowner saves money.
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.
431671
Basically your bank will loan you money based on the value of your property. There are loan ratios so lets say they have a 10% ratio (I think thats normal although others demand more or less depending on the area). That would mean you can borrow up to 90% of the value of the house. If the house is 100K you could borrow 90K. Now if you only owe 50K because you bought it a a few years back and it has gone up in value then your bank will lend you up to the 90K (or an extra 40K) for you to do whatever you want with. Its a cheap way to finance debt for purchasing things like cars, holidays, extensions...than using a credit card or personal loan BUT it means you are putting those things under your home loan and if you dont or cant pay then they reposses your home. You would start by going to your bank and having the home valued by a professional they recognise to see how much you could borrow. A good bank will pay for this service for you as long as you take out a loan with them. You generally set up a new loan (which means a new fee) and then your back to normal. Your home loan repayments will go up but they should be able to calculate these for you so you know what to expect. Remember interest rates are on the rise so factor that in. Happy spending.
977405
It seems like you have equity in your own home. If that is the case, then use hard money lenders to finance 65% of your deals and use a HELOC on your home to finance the other 35%.\n\nRegards
802727
Research is your best bet!\n\nBelow is a link that may answer your question on how loans work.\n\nYou may want to visit your local Small Business Administration for assistance as well. \n\nI also included a link to entrepreneur.com's website as well because it has a lot of info you may need to know about starting your own business.\n\nGod Bless and I hope all works out for you!
1028803
Have the owner(s) quit claim the property to you, if they are willing,(they might want something for their equity) then reinstate the loan by coming up with all back payments and late fees. Then notify mortgage company to start sending mortgage statement to you. You will need to get an authorization to release information signed by everybody who is on the note and or title.(This allows you to talk with the owners lender.) Some people will say that this will trigger due on sale clause, but 99.9 percent of the time, this is not true. Just because they say its not assumable, doesn't mean its true in the real world. The bank cares more to have a performing asset on their books, then to go through the expense of foreclosure. If this is not an option with the owners, since you have been renting house for two years, and if  your bankruptcy is now discharged, there are many sub-prime lenders who specialize in this type of transaction. Another avenue to consider, if there is not a lot of equity in the house, is doing a short sale,  the hurdle to get over in this situation,  is that the owner would have to be in the position to not pay his bills, or at least look that way on paper. Another way is if there is more than one mortgage on the property, the 2nd mortgage holder is usually willing to discount the note substantially, if they think there not going to recover the loan amount.. As far as paying the rent, legally, the owner cannot evict you while he is in foreclosure. (laws vary from state to state.) And yes, you will get kicked out after the property goes to auction. Another possibilty if you have the money, would be to approach the lender and see if they would sell you the mortgage. Lenders can and will do this, if you have cash money(they won't do business this way if you say you have to borrow it, although this can be accomplished if done properly, i.e. borrowing the money from someone you know) and many are willing to discount too. If you need more answers, repost with more specific info.
222776
get the delivery...it should convey rights of ownership limited to debt obligations.....what about the loan encumbering the property?
724041
Is it For Sale By Owner?  If it's listed then get your own Realtor to help you with the negotiation process.  You can use the listing Agent, but keep in mind that they have to keep Both of your interest in mind, this can be good or bad.  If you're working with the listing agent, they are likely to push for you to get it as they can get both sides of the commission.  On the other hand, your own Agent will be completely loyal to you only.  I don't think a letter will do much for you as the bottom line is the right price, and the least amount of hassle in regards to financing.  Never-mind a huge Earnest money payment, as there are a hundred ways to get out of it (not many people know this).\nMost homeowners could care less what/why you want the property.  It can't hurt to write them a letter, but it probably won't make much difference....good luck!
1031423
It is a foreclosed home and the bank now owns it and is trying to sell it. If you are looking to buy an REO (Real Estate Owned..A fancy word for The Bank Now Ownes It) be prepared for a bidding competition with other investors. Get as much information as you can about the property  as you can. REO's can take time depending on the bank. I have done REO's that have taken up to 2 months and others that were less than an month. It really depends on the bank and how many people are bidding on it. \nhttp://www.lendermark.com
752838
Assuming the following facts:\n\n1) You were the owner and had a mortgage.\n2) You sold the property to another individual on either an assumable mortgage, or with your mortgage company's permission "transferred" the loan to the current owner.\n3) The new owner failed to pay.\n\nIf the loan was assumable, depending on your mortgage company and how long the new owner has been paying, you might or might not be responsible for the loan.\n\nIf the loan was "transferred", based on the new owner's ability to get a loan on their own credit, you might not be responsible for the loan.\n\nHard to know without knowing the whole story and checking with your original mortgage company.
1161148
you contact your plans administrator and it should be fairly easy. it's usually limited to a certain percentage of your account balance or your annual contribution.  you will have to pay yourself interest on the the loan.  you should have received this info when you opened your account.
20271
Well, if the house still has a mortgage, you will only own the part that is already paid.  Say, the house is worth 300k, but there is only 200k left on the mortgage.  You will only own the 100k that was already paid for.  However, before you jump on it, you will still be liable for everything that comes with the house.  All, the liens, pending cases, all taxes, all settlements that are currently being paid, all workers that have worked on the house but have not been paid yet, etc etc.  So, after you do the paperworks and assume the position of the new owner, everything related to the house is yours.  I dont see a problem, but do consult a lawyer to have him dig up everything on the house.  I mean, if its left to you, you will not  be liable for anything against the house unless your name is on the deed.  Because someone leaves something to you and now you owe because someone is suing the owner of the house for 2 million.  How is that fair?  But, check up on it, and after everything is fine, you can take possession.
1135029
Basically, if the lender believes the new home will be your primary residence, then you can get a primary home loan.  Once you obtain a multitude of properties, you will find it extremely difficult to convince the lender this is the case.  \n\nDid you know that you need to tell the lender of your current mortgage that you're renting out the property?  I assume you obtained renter's liability insurance while rentin it out, rather than ordinary homeowner's insurance?