Creative financing for home

Hi. If the offer price is substantially less than what’s owed on the mortgage, can the buyer pay the whole amount due, and have the seller repay him/her monthly?

I’ve heard of the seller carring a note, but can the buyer?

Is this possible, better still, is it legal?

How does one do it?

Howdy Realnew:

I had a deal once where there were two duplexes and the owner owed $80K on each. They were only worth $40K in the worst ever market here in Austin. I almost bought one for $80K and he was going to pay off the other.

It is legal to do what you are wanting to do. The only draw back is if the seller decides to stop paying you the payments because you will not have any collateral.

If the seller is in default you may have the making of a short sale with the bank taking less than the mortgage balance.