I am selling my house in North Dallas due to a divorce and I want to know how do I go about carrying my own note. I am interested in selling the house to an older friend and I want to carry the note for her, but I still owe on my first mortgage. How do I carry the note on something like this?
2006-11-14 08:18:49 · 3 answers · asked by Bendak 2 in Business & Finance ➔ Renting & Real Estate
You create a contract for deed, and she pays you like any other bank, you pay your mortgage.
Most mortgages have a "due on sale" clause, which means that if they find out you have sold your home, they can call the mortgage due. So be careful. If it's paid on time, may not be a problem. If you don't record your contract, they may not find out. But it is a potential risk.
You should contact a real estate attorney to advise you and handle the documents and the sale. Gather up your mortgage documents from when you did your last closing and bring them to the attorney.
2006-11-14 08:23:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can do a 1-year land contract and set up payment to cover the PITI and the buyers down payment. Then in 12 months the buyer gets a loan based on the balance due on the contract your first trust is paid off from his loan proceeds.
The % of pymt that goes towards the buyers down payment must be escrowed in a non interest bearing account since the bank he goes to will want a summary of payments and verification of funds.
2006-11-14 08:23:59 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
is there a specific interest I must charge
2015-02-25 09:31:57 · answer #3 · answered by Pammy 1 · 0⤊ 0⤋