Home Selling in Orlando>Question Details

Javier Rodri…,  in Orlando, FL

Can you do owner financing on a mortgaged property? I have never came across such but we have a buyer asking this question.

Asked by Javier Rodriguez, Orlando, FL Sat Sep 3, 2011

In addition, property is upside down.

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It seems like a million years ago when interest rates were double digits in the 70's there were wrap around mortgages that were owner financed. I believe there is a clause in the mortgage that prevents this from being done today. Also the due on sale clause maybe the clause that prevents an owner from offering owner financing and wraping the new mortgage around the existing.
1 vote Thank Flag Link Sat Sep 3, 2011
I would ask my buyers wanting owner financing on a mortgaged property this: And what happens to the home when you make all of your payments to the owners on time and the owners fail to pay their mortgage??? You lose!!!!
Don't do it.
0 votes Thank Flag Link Tue Sep 27, 2011
Like Cathy mentioned. Owner financing is something that was once common. When interest rates were rather high, but I have seen a return of owner financing as of recently, especially with mortgage lending sometime been a challenge.
If I may offer a word of advice, look at your mortgage carefully, you may very well have a loan that may be assumable, some loans that may be assumable are, (FHA, and VA). If your mortgage is assumable, then buyer may be able to take over the note.
Hopefully this information has been beneficial for you. Should you need additional help, do not hesitate to contact me. I can refer a few escrow companies that can draw up a mortgage note for you.
Good luck.

Maurice Pierre
0 votes Thank Flag Link Tue Sep 6, 2011
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