hi…
i am buying a foreclosure house that the bank has… it is going for 85,000 and the ones that owned it owed 129,000 … how do i find out if there is a second mortgage out there… or would there be if the bank now has it…
is there anything i need to look for ???
also… they are saying that i have to either sale my house right out or have a rent agreement 12mths before i buy this house… after i close on this new house… can i not put this house up for owner financing?? or am i breaking some kind of law. … i can find someone to “rent the house” and then owner finance it after i close on the other house?? is that legal??
Susank
If you are buying a property that is bank owned then you will probably be getting a mortgage from a lender. Lenders are required to close with Title Insurance. So the bank has to convey clear title to you so you should not have any other liens to worry about when you close.
As for your second question…please explain. I don’t understand the part about having to sell your house or rent it for 12 months.
Sorry, I am just a little confused.
ok…
in order to get the foreclosed house… i have to either sale the house im in… or show that myhouse will be rented for 12 mths by someone… (i think to show that i have income coming from this house to help pay for new house)… but i dont want to rent it… so im wondering if i show that i have it rented by paper… can i owner finance it to someone… after i close on the new house… or is this illegal… hope this helps…
Ok that is what I thought you meant.
Depending on what your credit score is…you might be able to do a no doc loan or stated income If you can not sell your home before the purchase of the new one.
As far as selling it on owner financing, that will depend on weather or not your lender will allow you to sell it on a land contract. Most lenders don’t like it when you sell it with owner financing while they are holding the mortgage so they leave a clause in your mortgage called the “Due On Sale” Clause. That means that if they found out you sold your house on a land contract and If they choose to call the loan due…then they could.
I have never actually seen a lender call a loan due because of that unless the loan was behind on payments.
I hope this helps.
we are going on a stated income because we are self employed and our credit score are in the high 500’s… but i dont understand why they wouldnt let us owner finance a house rather then renting it… sounds like it would be more secure with a owner finance then rent… ( at least for me because im asking for 10000.00 down… and the people who want it are willing to pay that…) my current house is bought and paid for in full… so what would it matter to them what i do with it?? i want to owner finance it to help with the other payment… if i rent … i cant be sure that i will always have payment every month…
Susan,
I apologize, i did not realize that your house is paid for.
In that case you can sell it on owner financing all day long.
The only time you can’t is when there is a mortgage on it.
Good Luck to you.
Ramona