Remaining mortgage on a property that you're interested in buying

[Elonda Hatch]

What happens if I want to buy a home with cash and the owner has a remaining balance on their mortgage or if it's pre foreclose

[Tony SanFilippo]

Or......, you can ask if they need to pay the mortgage off.  Are they willing to keep the mortgage in their name and have you make the payments.  If so, you can do a contract sale, give them the difference in cash or have them carry you on a note (price of the house would have to be higher than the mortgage and Note in this case). 

Benefits:

You don't have to qualify for the mortgage, but will now benefit from the gain in value of the property and can even rent it out to cover the mortgage cost if the rental rate would be higher than the PITI. This strategy is called a wraparound mortgage, beware this could cause the bank to call the note due (but most of the time if payments are made on time, they don't - But be prepared to refi or pay it off with cash if they do). 

https://en.wikipedia.org/wiki/...

In case you want to read more - But different states have different laws on this, so consult a local professional!

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