if we buy a house owner finance what does closing entail

Asked by Four2con, Bell County, TX Fri Feb 4, 2011

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Dp2, , Virginia
Sat Feb 5, 2011
Basically, whether you finance your home purchase with a lender or the seller (hence the source of financing to which Bill alluded), the closing process should be similar, and it will be similar if you close this sale via a title company (which I'd strongly recommend) that's experienced with closing these kinds of transactions.

Before entering into such an agreement, you need to understand what you're doing. You might want to consult with an experienced real-estate attorney, investor, or agent. You also might want to discuss this further with your title company and/or a title attorney.

I specialize in doing deals with creative financing (ie lease-options, seller financing, etc), and I prefer to buy/sell with creative financing whenever possible. Although I don't invest in your area of TX, I do invest in other parts of TX. Please feel free to contact me if you'd like to bounce a few ideas, or if you'd like me to refer an attorney (I know at least 2 in DFW who are great resources and who also invest.)
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Bill Eckler, Agent, Venice, FL
Sat Feb 5, 2011
Four,

As Bruce has pointed out, proceed with caution!

Purchasing a home with "owner financing" changes only the source of your financing. Every other element of the transaction should be considered still being in place.

We strongly recommend that as a buyer you have your own personal representation to review the terms of the agreement and protect your interests. Contact an attorney ASAP.

Good luck,

Bill
0 votes
Bruce Lynn, Agent, Coppell, TX
Fri Feb 4, 2011
Be very very very careful with this. There are tons of scams with owner finance.
Do not sign ANYTHING until the attorney YOU hire looks over everything and advises you to sign.
This might cost you $200-$300 but will likely save you $10,000 or more.
You want a board certified real estate attorney to look at the contracts and forms.
In my experience 95% of the owner financed deals are messed up, wrong, illegal, or a scam.
The problem is if you find this out later then who and how do you go find your money that is probably
long gone. We see people loose the house and their money.
I know it is exciting to buy a house, but please please please get your own attorney involved.
If you say you can't afford the attorney, then don't buy the house.
If the seller tells you an attorney perpared the documents, you still need your attorney to review.
Good luck.
Web Reference:  http://www.teamlynn.com
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