Holder of My Note Wants to Sell Rather than New Buyer Assume Note

[Yolanda Columbus]

I am selling my owner-financed condo.  It is currently under contract. Buyer wants to assume the owner-financed note.  My owner wants a lump sum payment.  I agreed to owner-finance in second lien position if my buyer assumed the note.  Where will I find someone to purchase the note?

[Jay Hinrichs]

Originally posted by @Yolanda Columbus:

Thanks for your input.  One way for the sell to be a win for me is the 2nd lien position with the buyer assuming the loan.  According to the contract with my Note holder, selling it does not require his approval.  It does require that the buyer assumes the loan if it is not paid in full.

 google  wrap around mortgage  or in CA  All inclusive Deed of trust..  you simply wrap the note.. you stay on the hook though for the first and you collect the payment from your buyer and you make the payment on the first until its paid for.

Example.

your note to your private lender is  100k  you sold for 150k and got 25k down.. you do a wrap mortgage for 125k.. the payments coming in on the 125k lets say are 1000.00 a month  the payments to the person you bought it from are 750.00 you make the delta.  We did hundreds of these in years past when cash sales or sales were very tough to find. as pointed out its not as popular now because most folks can sell to new buyer who CAN get a new loan and cash everyone out..  But thats how you do it.. talk to a Senior escrow officer or if your in a Attonrey state a decent closing attorney they will know.