Home Buying in 14075>Question Details

Hausersherry, Other/Just Looking in 14075

what does it mean when the owner will hod the mortage for you?

Asked by Hausersherry, 14075 Tue Mar 8, 2011

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6
In the current market conditions financing homes has become more creative. If the owner/seller has a mortgage on the property you will want to seek legal advice before entering into this type of scenario because it can be a case of mortgage fraud and if the bank calls the note and you or the seller do not have the funds to pay off the remaining balance on the mortgage than the bank collects the collateral which would be the home. If the owner owns the property free and clear it is another story but, you can count on paying more than market value for the home in most cases.

Good luck,

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
homesales411.com
Web Reference: http://homesales411.com
1 vote Thank Flag Link Tue Mar 8, 2011
It means that the seller will lend you the money to close on the house. It's basically just avoiding the bank. The seller becomes the bank. They will give you an interest rate just like a bank would. The sellers will check your credit though and make sure you haven't had many late payments or collections, just like a bank would.

For more buying and selling tips, please visit http://www.RochesterHomeLocator.com

Salafia Sold Team
585-279-8210
http://www.Rochesterhomelocator.com
http://www.FindRochester.com
0 votes Thank Flag Link Tue Mar 8, 2011
It means you can avoid going to the bank and applying for a bank mortgage. If your credit is not that good it is possible that it may not be held against you. Seller financing has become more common as lending conditions have tightened. Both parties negotiate terms and an interest rate that is agreeable to each. An owner agrees to transfer title to a home in exchange for a note and a security interest in the property. Instead of paying back a bank the mortgage is paid to the seller. Bank and appraisal fees are avoided, and closing costs are lower. Attorneys should be consulted with prior to entering such an arrangement.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Tue Mar 8, 2011
It essentially means that the homeowner would act as the bank intsead of you obtaining a mortgage. Most owners require some kind of significant deposit. The owner usually will hold the mortgage for a short period 3 or 4 years with a baloon payment due at the end. This way it gives you time to improve your credit and apply for a mortgage in a couple of years. Unfortunately, most owners will not hold the mortgage. They usually would like to just sell and move on. This was much more popular in decades ago when mortgages were hard to get and you needed large down payments. Please contact me if you need any other assistance. I work in this area and would be glad to help
0 votes Thank Flag Link Tue Mar 8, 2011
Instead of you obtaining a mortgage from a bank you would be obtaining a mortgage from the owner. It's almost the same thing..the difference is who you would be making your monthly payments to.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Mar 8, 2011
If an owner/ seller agrees to hold the mortgage for you it means that they are willing to finance your purchase of their property, essentaily acting as a bank.
0 votes Thank Flag Link Tue Mar 8, 2011
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