Types Of Contract Advice Needed For Owner Finance
Here is the short of my story.
I own an investment property that has been on the market too long. Have a buyer who wants to work some sort of owner finance deal and I am willing to consider. The house is $350,00, as is, and they agreed to 5% down, 6% interest rate and ballon payment at the 7 year mark. They need time for credit repair and that makes me a little nervous.
They have offered to use a land contract deal so that we get the 5% up front if they default. I am not sure if this is best or if there are other options that I should look at. I typically only rehab and flip so I have no clue about owner finance. Thanks for any advice or thoughts you can share.
[addsig]
Seems that a lease with option to purchase may be my best bet. I am setting up an appt with my lawyer to talk more about the details.
Start with having the bank correct the error in posting. After that is made right, make move based on how the bank handled it, they may force your hand...
Do you have the deed? Just keep making the monthly mortgage payments as you had planned under your subject to deal. Make sure the payments are correctly posted.
If the lender forces your hand, ask for their loan assumption package.[ Edited by NewKidInTown3 on Date 10/30/2010 ]
I agree with the above posts... make sure the account is correct, though.
Thank you all for the advice...knew I could count on the experience of all.
To answer ITB (How do I know they are aware?) I have had to make several inquiries into the matter as the funds were sent to a wrong account. As such, the bank knows another individual is making payments on this account for now.
This was my first "subject to".... A real learning experience that should have gone smoother had the bank only followed their own directions and normal protocols.
Most of the time, BoA sells their first mortgages to Fannie Mae and/or Freddie Mac. Once the mortgages have been sold, BoA only retains the servicing and can not turn around and sell the note to you.
OK. Thanks. Is it possible to obtain the note or negotiate with them?
Most likely, Fannie Mae has securitized the note and sold mortgage backed securities with the note as collateral. Doubt you will get anywhere with Fannie Mae. They are not know to sell single notes. Now, if you wanted to buy a $5 million bundle of notes, that may get their interest.