In order to do owner financing, the owner must own the property free and clear of any mortgages. If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full.
Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.
The buyer is in great risk on a lease purchase transaction should the seller quit making their mortgage payments. Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing