Home Owners financing?

Question

I am a seller. If I get a mortgage, and do home owner's financing for buyer, can I continue to pay mortgage while financing home to buyer cause I keep the title/deed to end?

Also if buyer stops paying home owner's financing, do I keep the house, as if they were renting?

Answer 1

What you are speaking of in the terms of owner financing is when you sell your house to someone and you become the bank.

Now if you want to do something like this, you sell the property to the buyers find a closing agent, transfer the title and have a closing. The buyers then would pay you monthly payments. If what you owe on the first mortgage is the sales price then you will simple be the middle man between the mortgage company and the new owners.

If the first mortgage is not the sale price, there is additional amount to be paid you have to establish a 2nd mortgag in your name. It would work something like this. The first mortgage is
$150,000, but the value of the property is $175,000. You would have a second mortgage of the difference of the first mortgage and the sale price, in the illustration it would be a $25,000 second in your favor.

You would figure out the payment on the 2nd mortgage add it to the first mortgage and that would be their monthly payment to you. This transaction is called a wrap around deed or an all inclusive deed of trust.

In this scenario, you would have to foreclose on the property if they fail to make the monthly payments to you.

What you are getting into is more or less a lease with an option, or a land contract. You indicated you wanted to keep the deed in you name and kick them out if they fail to pay.

You have to figure out the best method you feel comfortable with.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

yes yes yes. It is called a contract for deed