Any Lenders For This?
I receive payments from a contract buyer. The property was sold sold for $115,000 for which the buyers took a note from me for $108,000. The principal and interest payment they make to me is $774 per month (8% amortized over 30 years with a 7 year balloon). The buyers also escrow their taxes and are required to carry a hazard insurance policy for which I am named insured. I do not carry an underlying mortgage, therefore there are no liens on the property. However, I do have an unsecured note amortized over 15 years at 6.5% for which the balance is $80,000. The payment on that note is also $774 per month matching their payment to me. The value of the property is probably $120,000. I am interested in the $40,000 difference in what I owe, and what the property is worth. The contract sale states that the buyers agree to not take title until the note is paid in full. Would there be lenders out there that would be interested writing a note on a property that I have title to and income from, but do not "own"?? If so, where would I go to find one and what terms and rates might I expect?
Thanks for the response. How common is it to find lenders that would offer competitive financing terms under these circumstances? I know I could secure a first mortgage on the property if I lived there, and owned it. But what about this case?
If your credit is decent, you will be able to get financing.
Get pre-qualified to learn your options.
Good Luck,
Robert
My credit is 740-760. The reason I have an unsecured note on the property now is because of the "due on sale" language in my original first mortgage. Although it was not enforced, I was afraid at any time it could be. I am really wondering about my ability to use the property as collateral.....again not owning it or living there.