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All Forum Posts by: Marc L.

Marc L. has started 3 posts and replied 5 times.

Post: Just closed...what next?

Marc L.Posted
  • Winona, MS
  • Posts 5
  • Votes 0

This is my first time selling a house and I've got some questions and don't know where to ask. I'm hoping someone here can clear it up for me.

My father owner-financed a home for me in 2012. We just sold the house and received the check ($92,000) from the closing attorney. Now, I need to get the money to my father to pay off the outstanding balance I owe him on the home.

Is this simply a matter of depositing the check that I received and writing a new one to my father once the funds have cleared? Are there any legal/tax issues that require the transaction to be handled a certain way? There is nothing special about the transaction and there are no other liens on the property. I just need to get the money from me to him.

Thanks for your help!

Post: Seller Finance --- Help Needed

Marc L.Posted
  • Winona, MS
  • Posts 5
  • Votes 0
Originally posted by Bill Gulley:
...Is he agreeable to you selling and still remaing responsible for the payment to him?...

...Interest should be more about the related to risk, but sellers usually base it on greed....frankly, as a profit motive....

...I also suggest you read here about loan servicing and services provided, it would be very helpful in this deal with different parties being involved and the cost could be paid by the buyer....

Bill...Thanks for the info. Yes. My father said he was not opposed to me financing the home as long as he continued to get his money and didn't have to be bothered with it.

As for interest rate, my primary concern is trying to get someone in that will be able to take on the long-term commitment or able to bank finance at some point. Putting the buyer in an impossible situation would be counter-productive for me, but I also see the value in setting the rate to encourage a refi sooner than later.

I'm glad you mentioned the loan service. I looked at a couple of websites and read one of the account setup forms. Questions that I have are about tax and insurance payments. Two options are available:

- Establish a reserve impound for collecting and paying taxes and insurance.
OR
- Collect $___ for taxes and/or insurance and pass it through to the seller.

If a reserve is collected (is this an escrow?), who gets the money to pay TI and when? If money is passed through to seller for insurance, is the seller the policy holder or does the seller make the payment on behalf of the buyer/policy holder?

Post: How does this scenario work?

Marc L.Posted
  • Winona, MS
  • Posts 5
  • Votes 0

Craigslist ad:
For Lease Purchase - $2,000 down/$600 per month OR $3,000 down/$500 per month for 15 years and the house is yours!! I pay the insurance and taxes and you take care of the maintenance.

Is this legitimate or is it a souped up way to get a non-refundable deposit? I'm assuming the tenant/buyer never has the option to get a traditional loan to buyout the rest of the lease.

Post: Seller Finance --- Help Needed

Marc L.Posted
  • Winona, MS
  • Posts 5
  • Votes 0
Originally posted by Marc L.:

4. It appears that foreclosure processes vary from state to state based on contract type. Have I provided enough information for anyone to tell me what my foreclosure process would look like in MS...if the situation arises? Cost, time?

5. What do I do with the down payment? I'm envisioning having it in a savings account to use if things go south to cover foreclosure or property damage costs. Is that reasonable and/or customary?

I found the Foreclosure Resources link and answered some of my own questions. Or at least came up with a few more.

Post: Seller Finance --- Help Needed

Marc L.Posted
  • Winona, MS
  • Posts 5
  • Votes 0

Back story: August 2011 my family moved from TX to MS. My dad had moved from MS to TN and his house in MS had been on the market but not selling. He agreed to sell us his MS property at no interest so that he wouldn't have to deal with property maintenance and taxes. I felt the price was fair and no interest sealed the deal. We had a local attorney do a Land Deed of Trust and Installment Promissory Note...total cost $300.

It's now 1 year later and my city wife has decided she can't take the country life. We are moving back to TX and need to do something with the house in MS. Knowing that my father sold it to me as a mutually beneficial transaction, I felt obligated to offer it back to him with him keeping my equity and us paying the taxes for the year. He made it very clear that he does not want it back under any circumstance and prefers that we just continue paying the monthly payment.

I have talked to the local realtor (yes...only one) and checked the local listings to see what comparable houses are selling for. I am concerned that after realtor commission we will not be able to sell the house for the payoff amount and am pondering the possibility of seller financing. I don't need the lump sum payout. I only need to cover my promissory note and get out from under the taxes and insurance.

Questions:

1. If we go through with this, would we be able to handle the paperwork the same as the original contract between me and my father...Land Deed of Trust/Promissory note? Or are other complications at play due to the wrap or non-familial sale?

2. Are there standard, accepted terms regarding down payment, interest rate, or term of loan? I had read several places 8-12%, but the posts were old. I don't know if that is based on current interest rates at the time and apt to change.

3. I think I grasp the concept of the balloon note, but what happens if the buyer is still unable to get traditional financing at the end of the period?

4. It appears that foreclosure processes vary from state to state based on contract type. Have I provided enough information for anyone to tell me what my foreclosure process would look like in MS...if the situation arises? Cost, time?

5. What do I do with the down payment? I'm envisioning having it in a savings account to use if things go south to cover foreclosure or property damage costs. Is that reasonable and/or customary?

6. Is there anything else I need to be concerned about?

I apologize if this post got a little lengthy. I debated whether to break into shorter posts. If there is any online reading that you can recommend that can answer my questions, feel free to throw it out. This forum seemed to have the most understandable, newbie friendly posts, so I'm looking forward to your replies.

Thanks in advance!