Refinancing after using seller financing

[Nathan Wiebe]

Can you refi a property after using seller financing to get better terms? Are seller’s ok with this? What’re people’s experience with this?

[Tracy Z. Rewey]

Originally posted by @Nathan Wiebe:

Can you refi a property after using seller financing to get better terms? Are seller’s ok with this? What’re people’s experience with this?

Some sellers are ecstatic to be paid off. On past deals I've been able to go to the seller and ask for a discount if I pay them off early. My best discount so far was $10,000 off on a balance that was about $108K (so they accepted $98K). The seller also owed money to two other underlying liens (aka a wrap or AITD) so the payoff went to the servicer with strict instructions on how to disburse to be sure all liens were paid and released (with the seller getting the net as @Jon Holdman mentioned). You could also use a title company to handle this if there is no servicing agent.