Seller / Owner Financing

[Julio Velazquez]

Hello BP,

When it comes to Seller/Owner Financing how does this work when the seller/ owner still have a mortgage on the property? Do they pay the mortgage via your payments, Do you make the payments to the lender.. if the payments go to the seller how can you protect yourself in the event that the seller stops making the payments to the mortgage and you don't lose the property?

Thanks in advance.

[Monica Breckenridge]

@Julio Velazquez this has been my strategy to acquire 100 rental properties and become a decamillionaire. I would buy the homes subject to the existing financing. I own the house and I make the payments to the mortgage company directly. The previous owner no longer owns the house but their loan is still in place. We get power of attorney to talk to the mortgage company just in case there is a change that happens to the mortgage payment. When selling the home the equity is mine because I own the house. When I rent the house the cashflow is mine because I own the house.