Seller financing? How does it work?

[Rigo V.]

If the owner of a property still owes a balance on their mortgage do they have the option of seller financing in any way? What creative way can be used to obtain a property like this? 

[Derek Dombeck]

If you buy a property Subject to the mortgage and the deed transfers out of the sellers name, any judgements or liens AFTER the closing will not attach to the property because the deed is no longer theirs to attach to. Just because the loan is still personally guaranteed by them and on their credit report does not give anyone the right to attach. The lender CAN call the loan due and foreclose if they choose to. This almost never happens. Do NOT take over a property subject to if you can not afford to make the payments and if you do not have a way of paying off the loan IF it is called due.

That said, I really like buying this way and after you get educated on the proper way to do it, you can help people and get great deals with little cash out of pocket.

Happy Investing

Derek Dombeck