Home Selling in Brownsville>Question Details

Sandra Rea F…, Home Buyer in Brownsville, TX

Can you sell a house when its owner financed?

Asked by Sandra Rea Flores, Brownsville, TX Sun Mar 17, 2013

I bought my house 4 years ago through owner finance. I dont think i can continue making payments, so my question is can I sell it and try to get some money back or do I have to turn it in and loose what I've already given

Help the community by answering this question:


If you completed the owner finance correctly the home should be in your name and you can sell it assuming you have enough equity to sell with out it becoming a short sale. If the latter is the case you will have complications.

I am in the process of refinancing a client out of their owner finance home and they are on title and the property is theirs. Their current loan we are paying off is still in the original buyer's name. If they wanted to sell the home they would be able to do so.

So it really comes down to how the original process was handled. You should speak with a title company and a real estate attorney to decide how best to proceed.

Hope this helps.

Don Groff
REALTOR® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
office: 512.669.5599 mobile: 512.633.4157
http://www.AustinListed.com | http://www.360LendingGroup.com
0 votes Thank Flag Link Mon Mar 18, 2013
Depends on how the "owner financing" was structured. Was it a contract for deed, wrap mortgage, subject-to purchase, etc.?

If you want to contact me directly through my web site, I might be able to help give you some guidance on this once I have more information. Reach me through GlobeAssets DOT com.
0 votes Thank Flag Link Sun Mar 17, 2013
I don't think, in this case, that anyone is concerned with what "you may lose".
You have lived there for four years, probably paying about the same as if you were renting.
What you should be concerned with, is if the house is worth less than you agreed to pay:
You are creating a Shortsale for the Seller; they are going to take a bath.

You will walk away with nothing, your credit will be ruined, and the Seller may be able to sue you; even though Texas is a Non-Recourse State. (This question is above my pay-grade).

If you can afford to rent somewhere else; then you can afford to work something out here: You owe it to yourself, but most of all, you owe it to the Seller who had faith in you!
0 votes Thank Flag Link Sun Mar 17, 2013
Much will depend on any contract you signed. Someone needs to look at it to see. If it allows you to sell it and pay off the original owner earlier than called for you could sell it and use the proceeds to pay off the original owner just as you would if it was a bank that lent you the money to buy it. I would speak to a lawyer to be sure.
0 votes Thank Flag Link Sun Mar 17, 2013
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