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All Forum Posts by: Mike Jennings

Mike Jennings has started 1 posts and replied 3 times.

Post: owner financing question

Mike JenningsPosted
  • Corona, CA
  • Posts 3
  • Votes 0

thanks everyone for the comments. Sounds like either way I found a pretty good deal. What appealed to me about the wrap mortgage was getting my down payment back and the promise of a steady payment over time through the interest without having to worry about tenants, but I suppose at any time they could refinance the loan anyway and I would have to pay it off anyway. Bit it sounds like there's a lot to consider, as well as a lot that's not quite figured it, regarding owner financing. Maybe a lease option would be an easier way to accomplish a similar thing of getting most of the down payment back so I can use it to buy other houses. I like the idea though of helping people find a home that don't traditionally qualify from a bank. Not looking to rip anyone off - hoping for a win win win for everyone :)

Post: owner financing question

Mike JenningsPosted
  • Corona, CA
  • Posts 3
  • Votes 0

thanks all for the insight so fast - a couple of clarifying points for all though:

What I'm looking to do is a wrap mortgage (thanks Matt). The owner I'm buying from owns it free and clear and because I'll be paying 0% interest on the loan I see an opportunity to be the bank instead of the landlord here. 

I guess my real question is, after thinking about it a little more, is if I do a wrap mortgage and place myself in the second position, and have to foreclose, can I go through that entire process as the second position on the loan and not have to sell the house and pay off the original loan at the same time? Sounds like k Marie answered that it's possible for that to happen and I could find a better qualified buyer and try to do the same thing again if need be, with the first lien still being in place, barring any magic spells out undeserved generosity from the note holder :)

Post: owner financing question

Mike JenningsPosted
  • Corona, CA
  • Posts 3
  • Votes 0

hi there,

I'm about to get my first property under contract using owner financing by 10% down and all payments going towards principal for 20 years! 

My question is the previous owner still has the first lien on the house until the note is paid off; so could I then resell the house to someone else and place myself as the second lien on the house, similar to how a bank would collect interest on s traditional mortgage? And then if for some reason I have to foreclose on the lien, would I simply pay off the first lien and now own the house free and clear? 

I hope my question makes sense - any help would be appreciated. Also feel free to ask clarifying questions!