This can be a very good thing for you on a home that's not in foreclosure. There are plenty of sellers out there that have equity and are willing to carry back a portion of the sales price as a loan at a nominal interest rate. This is especially true in a Jumbo Loan situation, above $725K conforming limits. I have a listing on Balboa Island where the owner only owes $1.2M and the value is $1.6M. In this scenario, the owner has equity and is willing to allow a buyer to take over payments on the existing $1.2M loan and then carryback the difference. This is a great way to buy a home, no money down, and no loan. It's important to have an expereienced agent help you with these transactions. It is recommened to have a third party servicing company handle payments to the existing lender to ensure payments are being sent. :)

Hi Normy,

"Cash to New Loan" is traditional lending...meaning that you will put a down payment and get your own financing. "Owner may carry" means that they might be the "lender" for you for a period of time with a decent down payment. They don't specifiy in the listing how much they might want.

My concern is that this is in foreclosure....if you tried to use seller-financing, you have no guarantee that they will make the appropriate payments to the bank and if they don't...and the bank forecloses, you are simply out of luck with the funds. So we need to be very careful.

Hope this helps..let me know if you have any other questions...or if you'd like to run out and see it.

Karen