Owner Finance deal- has 2 mortgages, Agreement for Deed …Can I even buy this thing?

[Amanda Sutherlin]

Found an Ownder Finance deal but found out it has an Agreement for Deed with 2 mortgages due on Nov 15th 2016:

$18,500 mortgage due to an individual

$34,450 mortgage due to an LLC

Paid $55K with $5 down and paying $700/month with $200 applying to principal and $500 in interest. Bought Nov 2011

All this info is in the Agreement for Deed, which is an intresting read I must say.

Can I buy this with owner financing today without the other 2 mortgages being paid off? If we do come to some agreement on the price and payments but she for some reason can't pay off the 2 mortgages in 2016 what will happen? (foreclosure on both of us?) Are there other concerns I need to be aware of?

[Bill Gulley]

As` Dion mention, she is in an installment contract, she can't sell and finance what she doesn't own and she can't pass title subject-to since she doesn't have any title interests.

Agree too, the numbers don't look right. She might get a heck of a deal, if she was messed over, have an attorney look at the deal after you get title work.

She can sell, but the underlying mortgages must be paid off putting her in title, if just for a minute.

Until the numbers are defined can't say if it's a deal, I'm guessing not.

Doesn't sound like a contract you would want to try to assume through the two note holders, they may be related parties too. Interest and principal aren't amortized if those amounts are to be constant, that wouldn't be a compliant note. Even amounts are very odd! Might be good to let an attorney take a look at it, shouldn't cost anything to get an opinion, if there is something screwy they will tell you and what costs would be and action to take.

Other readers......see how these seller financed deals come to the surface after they are made and how others get involved????? That's how you get hammered and lose big bucks! :)