Seller Financing With Mortgage?

Question

Hi, I found a nice duplex which I'm interested in purchasing. Problem is my husband and I are in process of obtaining a mortgage loan for another property right now and so our credit is tied up. I was wondering if it would be possible to use seller financing to buy the duplex even though there is currently an existing mortgage on the property. Could this work?

Thanks in advance,

Lana

Thanks in advance,

Lana

Brian Gibbons · Answer

A lot of realtors don't like changes because ithey need to go talk to their brokers about the changes

Subject to is considered outside the box,

What is the existing financing and what is the property worth

You are in Texas and wraparound mortgages are common

Google "lonestarlandlaw wrap"

Read what that attorney has said about wraparound mortgages in Texas

Max Matrin · Answer

Offering owner financing is a sensible way to sell property and extremely common all over the country (it has been estimated that approximately 10%-15% of property sold is now done so with seller financing). Offering to finance the purchase of your property can help you sell it more quickly, may provide tax benefits and will give you a nice source of monthly income. Enclosed below are some additional benefits enjoyed by offering to provide owner financing to potential buyers.

Logan Hicks · Answer

Why not just do a mortgage takeover right after your mortgage settles?

Eric Schalk · Answer

You are going to have to talk with the seller and find out their situation. If title changes and the property is sold to you, most mortgages have a "due on sale" clause, meaning their loan must be paid off when the property is sold.

Lana Griffin · Answer

So the duplex is listed with an agent. The agent insists on using a promulgated contract form. The problem is that the Promulgated Contract Form included the following provision:

"(4) There will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing the payment of any loans assumed by Buyer and assumed loans will not be in default."

I will buy the duplex with mortgage through seller financing, so there will be liens against the property at closing.

I'm considering a few options:

1. Should I strikethrough this provisions from the promulgated contract form and create an addendum that the buyer is aware that there is a existing lien on a property?

2. Should I create an addendum that the buyer is aware that there is a existing lien on a property and include something like "If a conflict exists between the terms of the Addendum and any other portion of the Contract, this Addendum shall control"?

3. Should I create an addendum "Assumption of liens" and include something like "If a conflict exists between the terms of the Addendum and any other portion of the Contract, this Addendum shall control"?

What is the best option for me? Maybe there is a better way to do it?

Thanks in advance for your help!

Lana

Andrew Meyer · Answer

Only way you could know if seller financing would work is to ask the seller. They would probably want to do a short term deal and then refiance it once you are able to, but you'd have to work that out.

I know my RE brought me a deal of 9 duplexes, but I don't have that kind of personal financing, but they are willing to do some seller financing to cover part of the down payment and then if I can get a 70% LTV commercial loan to cover the rest we might be able to work out the deal.

Seller Financing With Mortgage?

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