I Need Help W/ Structure
Hello,
Thanks in advance for any help.
I have found a seller who has agreed to sell me his house with $0 Down, 30 yrs, 7% 150k (owner carry-no bank)
has an underlying loan with equity
I have a buyer who has agreed to the terms plus a down payment for me
what si the best way to contract this deal?
Portland, Ore
Offer it to your buyer as a lease to own type contract. There are differnt types. Or just contract it as owner finacing. They dont have to know your doing the same thing. You would have to find the one that works best for you. An in the mean time try to find Your one finacing so you can lower your intrest rate and payment for more of a profit!!
thanks!
So even though my seller still has a mortgage, he is going to sell it to me on contract, then I will in turn do the same?!?
thats right, but to save yourself money look for alternate financing mean while. or try to get the current owner to lower his rates, but i doubt he will do that.
What about the enigma known as "Due on sale clause?"[ Edited by WeAllWin on Date 12/16/2004 ]
what about the due on sale clause?
If the seller has an existing loan on the property and then sells it to you providing owner financing, his lender may "call" his loan. Its called a due on sale clause. He would have to pay off his mortgage. And since he is financing the home to you. Where does he get the money? Maybe he's just a nice guy