2 Qs?

  1. what is FSBO?
  2. if you want to buy the house, how could the owner of the house carry the mortgage for you?

just read the story, and have these 2 Qs, need A.


Howdy Yalanola:

For Sale By Owner

Owner may be able to finance using several different methods depending on which state you are in.
Contract for deed: Where the title stays in sellers name. You basically have a contract stating how much per month and how long until you pay the agreement off and get the deed.
Lease option: A lease with the option to buy at a later date at perhaps a specific price. The price could also be set at a future date by appraisal for example.

These two are now almost illegal in Texas due to new laws.

Deed and Deed of Trust: Seller gives you a deed and you give a note and deed of trust (mortgage in some states) The documents are recorded at the courthouse and the deed of trust creates a lien against the property so you can not sell without paying off the debt. If the seller has a loan on the property they can also use a Wrap Deed of Trust or also called an all inclusive deed of trust where you agree to pay and are fully aware that he has to pay on his debt.