I have a mortgage on a rental and I want to sell it. If I have a 50,000 mortgage and i can sell it for 64,900, owner financed, how do I do paperwork and what forms or will the lawyer tell me how? If I can’t pay my loan off I don’t know how this works. Thanks for any help.
Hi ruready,
So you want to be the bank eeh. I’m going to assume you want to use a Land Contract Note, there are other ways but I’ll let other members address those. Agree to terms with your buyer and have your Lawyer draft you up a state compliant LC form. you don’t need the lawyer but I recomend one. May I suggest 10% down @ 8-11% int.
my 2 cents, herbster
Has anyone ever heard of a pactrust? Has anyone used them?
File Deed with Note/Deed of Trust. Get a good local RE attorney or a contact at a local title company. Doc prep and recording fees shoudn’t cost that much. Your borrower can refinance the note sometime in the future.
Ruready, there is a Guru who pushes the pactrust. As soon as I find him I’ll let you know. BTW a properly structured Land Contract Note can be sold. PM me if you want more info. on this. Done right you may get 80 cents on the buck because that market has changed a lot also. herbster
The PAC Trust guru is Bill Gatten, http://www.reiclub.com/forums/index.php?action=profile;u=15709
Keith