As an investor, I do this all the time. There are 2 ways you can go about it, you can "rent-to-own", or owner finance with a "wraparound mortgage".
You "rent-to-own" by putting the property under contract for a specific price to close 6-12 months out, with earnest money as their "down payment" that is non refundable and goes directly to you. You attach a lease to the contract as an addendum that has to be fulfilled. Keep renewing the contract/lease until they can get their own financing. Least amount of paperwork, least amount of hassle.
The "wraparound mortgage" is a document that will include your existing mortgage, and "wrap" the buyers mortgage around it (the one you write). Same downpayment that goes to you, and there are more tax reporting and servicing issues you need to consider (who's going to service the note, file interest deductions, etc) so this is more paperwork and more of a hassle, not to mention you need an attorney to draft these for you. Mark Torok or West & West in SA can do these for a fee. Yes, you do have "due on sale" issues, but the risk is non-existent unless you're really trying to defraud the bank or try to screw the bank over.
Let me know if I can assist.
An attorney will be able to give you the best advise on how it may be possible to achieve your goals. You will need to provide the loan documentation you signed at closing for the attorney to be of best assistance.
1.The sale price will be "payoff" plus $15,000. You put down the 15,000. and you pay the monthly payment of 1,450/month to Mr. ???? for one year and then you assume the balance of the loan at that point. That should be a balance of approximately $218,000. I believe Wells Fargo's only "hold back" from what I understand is that you would not be here to live in it within 60 day from the close. This way you told me ??? retires in ???, you guys could go ahead and move in, and then do loan assumption. You do not get your money back - tht would be like asking the bank if you could get your money back - but I promise you the ????? would be willing to carry on an owner finance till you could assume the loan.
I hope this helps. Let me know if you need anything else, or if I need to be clearer.
On Mon, Jul 23, 2012 at 3:53 PM, wrote:
husband has some question
1 who puts the 15K down ( us or the owner )
2 What happens if Wells Fargo won't give us a loan after we have paid for a year (do we get our money back )
3 what happens if we get the loan (but can't get there in 60 days
Please see my blog with tips on how to rent to own a home
If you do find a buyer that does not mind owning a title behind your bank then you need to be careful, because the mortgage stays in your name and guess what happens when that person does not pay.
Real estate investors love these type of deals, in fact this is how I started in real estate investment business.
You as the person being at risk need to realize the Real Estate market has not hit bottom in most areas of the country and foreclosure is still happening at record rates, so the potential of a deal like this going south is high. These deals work great when the market is moving up not down or even flat.
Buy a home after foreclosure expert
Helping families/people that have lost their home get back into a new one in as little as 6 months
Why drag out your pain for potentially another 30 years.
Short sell is likely the best option or perhaps renting.
Short sell can relieve you of the headache and help you get the most for your property.
Renting can perhaps help, but also might drag out the pain for you.
If you decided to go this route-- you would want the buyer to send payments to you (with taxes and insurance, etc.). If there is an HOA fee you should have the buyer pay that to you as well. This way you can make the payments to your lender /hoa to ensure they are getting paid.