I am reading about this but would like a lil help. Any other info on the topic is appreciated. Thanx
2006-12-10 21:22:31 · 3 answers · asked by Aja 1 in Business & Finance ➔ Renting & Real Estate
It means you don't have to apply to the bank for a mortgage.
It is a straight contract between you and the seller. Down payment and monthly payments as you both agree.
Usually you pay the seller the Principal and interest so they make more profit rather than the bank getting the interest. They don't get their money right away, but they do get more. If you default and don't pay for a few months, the seller may resume ownership, even if you only owe a few payments.
Be careful of the terms, Have your lawyer explain it to you before you agree and sign. There are as many ways to write a contract. Be sure this one is explained to you, and you truly understand the deal. Then if you agree, accept the terms and move in, or rent it out.
2006-12-10 21:45:31 · answer #1 · answered by Bob L 2 · 0⤊ 0⤋
It means you will be making the mortgage payments to the seller. There probably won't be an escrow, so you will pay the taxes directly to the tax agency. Check with your real estate agent for more information.
2006-12-10 22:37:22 · answer #2 · answered by crazydave 7 · 0⤊ 0⤋
he has enough equity to carry the loan for you. Watch out, and use an attorney on the deal and especially the loan.
2006-12-11 02:27:31 · answer #3 · answered by zocko 5 · 0⤊ 0⤋