Another house question...3rd time a charm?

Question

Ok,we were trying to buy a house but it fell through. Now we are trying again,decided on another house,but changed our minds.
The third one is owner-financed so,according to them,they just have to transfer the house over to us.
So,will this house buying process be faster,with no inspections (they just remodeled the house),and,my husband signed a contract. Does that mean we still need co-signers or will the house be in his name only? Don't think so...Does the bank find co-signers for you?
Thank you.
N.

My husband is the one 'going it alone' not me. He says the bank says the co-signer has to sign the contract now,as for the loan,yes we needed it for the first house,but as the second and third were owner-financed,we don't need the loan?
I guess not,because the 1st loan was only for the 1st house,you can't use it on another,right? THAT house was a disaster.
My feeling is we don't need a house & can't afford one but hubby won't listen.
What do you do with people who won't listen?
Let them make their own mistakes and learn for themselves.

As I stated before..this is all my husband's doing,not mine....I tell him all
this info but he does not listen. He is not very intelligent.
As for me not knowing what I am talking about....that is why I am asking these questions....:)
Keep those answers comin....

I told all this to my husband..he doesn't answer.Now he says he doesn't want the house even after he signed a contract. NUTS!!!!

Answer 1

edward I is correct on this one. You are dealing with the home owner. They are doing the financing, not the bank. So unless they request a co-signer (not likely) then this is just between you, your husband, and the home owner.

Regarding inspections.....the bank does demand them because they want to be sure the house is worth what you claim it is. That is also the reason for the appraisal. If it's appraised at $100,000, and a home inspection shows about $20k in improvements/repairs is needed, no way will you get a loan.

In many states, such as my state of Michigan, the home owner is required to supply you with a disclosure about the home, certifying that there is nothing wrong with it. That implies that they did an inspection at their expense. If, after you move in, you discover that there are major structural or other problems with the home, you can get out of the contract, or sue for damages. Not sure if this law is in all states.

Oh, and note that the "home inspection" business is quickly becoming a scam. There are tons of home inspectors who are totally unqualified, don't do proper and thorough inspections, and may even be unlicensed.

I do highly recommend having a lawyer look over the contract.

Answer 2

I doubt the bank will find you a co-signer , because a co-signer will be responsible for the loan if you default , if it is owner financed why do you need a bank in the first place , so what if they remodeled it could be covering up a major problem , and you would not know this without inspections , such as termite damage etc. ..they will not put the house in your name until it is paid for . the billing will be in your name , unless they put a lien on the house for the amount owed . If the contract is signed it is done , if he is the only one who signed it at the time of the filing then it is in his name ...

My question to you is , if you do not know anything about this process , why did you go at it alone ?

Answer 3

The bank will let you know if you need co-signers but they won't get them for you. This kind of deal is called an assumption.

From sad experience, I will warn you to insist on an inspection at your expense. Just because they remodeled doesn't mean they didn't take shortcuts with wiring or plumbing that might cost you a lot of money later on.

Answer 4

Well you have skipped the first most important of all by signing a contract an Atty has not gone over with a fine tooth comb.

Get an INSPECTION.

I do not think you exactly know what you are talking about first you say OWNER financed then you wnder if the BANK will need cosigners.

Go see an Atty before you get big time screwed!

Answer 5

First of all, a home inspection is to protect you, not a bank. It is well worth the cost to have a home inspection. You dont need to find out in 3 months the heater doesnt work, that the attic is filled with mold, and that the wiring is a fire trap.
Secondly, the mortgage will be made out by the seller to whoever you want it to be made out to. If you want both names on the deed and the mortgage, then tell him. MAKE SURE YOU HAVE AN ATTORNEY READ THE MORTGAGE. Under no circumstances should you sign a mortgage without an attorney review.

Answer 6

1. Should be a lot faster.

2. Since your husband has already signed a contract, there should be ne reason for co-signers, if there were they would have already told you.

3. Yes it should be in your names only.

4. No banks do not find co-signers for anyone.

Answer 7

As an owner "financier", the house will remain in the owner's name until paid off, or refinanced with another lender, whereby the owner will receive all his/her money.

In the meantime, you will be responsible for maintenance and any repairs.
In owner financed situations, no co-signers should be involved. The owner holds the deed for collateral and can take the property back in case of default.
The house will NOT be transferred to you, until paid.

Inspections should have been performed. You have no recourse for termites or any other problems, except to default.

Answer 8

Can be faster as there can be less red tape; but that is up to the seller and might not afford you all the protection you need.

Cosigner is up to the seller when they look at your credit; and no the bank does not find you a comaker; family occasionally friend or employer are about it.