Home Buying in Conifer>Question Details

ncatalfano, Home Buyer in Conifer, CO

looking for owner carry in conifer but the filter does not work, can you help?

Asked by ncatalfano, Conifer, CO Sat Dec 1, 2012

This question was asked from this property: http://www.trulia.com/property/3072850616-9575-Marauder-Dr-C…

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You might do better playing roulette in a casino and put your money on red, probably better odds. Owner carry does not offer you the same protection as a regular mortgage lender. We are federally regulated, sellers are not. If a mortgage lender lends you money and then goes belly up you are not in any danger. If a seller hits the wall, gets divorced, dies, gets caught cheating on their taxes, wife girlfriend or significant other where do you stand?

If you can’t qualify for a traditional mortgage with rates where they are today it may not be a good idea to buy anything. Trying to “work around” the rules that are there to protect you may not be a good path to follow.

Assuming the seller is in a better position than you is crazy. If you still want to do this, be sure to check them out, how strong are they? How credit worthy are they? Did they turn in their third grade homework on time, okay that last one may be a little much, but not way out of line…

Are there good sellers that will do this? Absolutely. Will it work out for you, maybe, maybe not. What you know for sure is it assumes two things, you do what you are supposed to do and so does the seller, that’s at least twice as much risk for you than a traditional mortgage. If you do not currently qualify for a traditional mortgage then your side makes the odds a lot worse. There is no outside answer to an inside problem.

By the way, I don’t lend in your sate so not soliciting your business, just trying to be helpful. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
1 vote Thank Flag Link Sat Dec 1, 2012
I would love to talk to you about any of your questions. Please contact me:

Trudy Hentges
Cell: 303-506-0704
Office: 303-697-0909
0 votes Thank Flag Link Mon Dec 3, 2012

Jim's answer is a good one, although 'brutally honest'. I have counselled others about this and in many cases it is not the best scenario for the buyer. Everything is stacked in the seller's favor and there are many things that go into why you would want to do this and why the seller would want to agree. Some of the reasons and motivations are not to your benefit. I also feel much the same way about 'lease-option' and 'rent to own'. I wrote this article about rent to own recently - http://j.mp/KytoWP . Sometimes the best scenario is to do a low rent for a while and save your money while going through a credit repair program. Those who have a bankruptcy or foreclosure can often purchase a home again after 2 - 3 years. This is a case where patience is a virtue.

Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
0 votes Thank Flag Link Sat Dec 1, 2012
Thanks for the reply, we have a nice down - don't want to file bankruptcy - credit won't improve for years to come - don't want to rent. Some areas such as Tennessee have a lot of owner finance, however we have a business here and can't leave for years.
Flag Sat Mar 2, 2013
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