All Forum Posts by: Zachary Floyd

@Zachary Floyd  No, as far as the lender is concerned you're buying the property at the price listed on the Purchase & Sales agreement.  You haven't mentioned that price which would be helpful.  I threw out $150k as an example.

Note you cannot "transfer the mortgage" to you.  The mortgage is in the sellers name and remains that way until paid off.

@Zachary Floyd  If she's willing to do it as unsecured loan (so you're not recording a mortgage), that could work.  Although I don't why a seller would be willing to do that, seems very risky. 

The lender for the $70k would probably ask where the remaining balance is coming from. For example, if she's selling to you for $150k, they're going to ask about the other $80k, plus it's going to show on the closing statement (HUD).

@Zachary Floyd  So getting the loan for $70k to pay her balance off should be a fairly straight forward transaction.  As mentioned above, you would have to get a lender that would allow a 2nd place seller financed mortgage.  You may want to check with local banks or credit unions for that.  I imagine any big banks (B of A, Chase, etc) wouldn't allow the 2nd. 

Would a 2nd mortgage be necessary if she's willing to quit claim the deed to us and take no interest payments?  Ideally we just wanted to get a loan to pay off what she owes, she would quit claim the deed to us and we would have 2 payments, one for the 70k loan and one to her.  

@Zachary Floyd I read the post incorrectly the first time. I corrected my response above.

Originally I thought it said you were paying $70k cash.

@Zachary Floyd You need a lender that will allow a sell carry back loan on top of the 70k loan. 
Would be better if you could partner with someone who has $70k and then you don’t need a lender. Then you can work out the seller financing with an attorney and title company. 

Is this going to be a rental or a flip?

@Zachary Floyd You don’t need the lender in this scenario. You just need an attorney and title company.