I just got an ok from a seller. Here is the deal. 5 family house, no down, 35000 amortized over 30 years with a balloon at 15 years. He is going to hold the note. How do I write a note and then file the mortgage?
Well I a newbie, but you don’t have to write a note as the note being created between you and the seller is his note and you are paying it. I haven’t even bought one house in my life so let’s see how close I get to what the experts say…
Essentially since it is owner financed it is up to you and the seller to draw up a contract describing the mortgage (payments, amounts, interest) and then he signs the title over to you but has him as a 1st lienholder or rather you name is put on the title somewhere but is not yours until you pay off the 1st lien holder.
Sounds like the only thing that requires you to do anything is prolly go to the title company for closing and have them set all that up with the title. The mortgage I believe is just between you and the seller.
So how was that? Close? God I can’t wait for my first closing so all this will make sense when I see it happen in front of me! HEH!
There is a website that might be able to help you if the owner is interested. There is a company that will buy the payments due to the seller of the home with a $6,000 fee. So if the home is sold for $35,000, they would pay the seller $29,000 for the
30 years of payments due by the buyer.
You can get more information at www.ownerbiz.com/?homemortgage
This way the current seller gets the asking price for the home
minus $6,000 instead of waiting for 30 years to recieve payments. The company then will handle the payments from the buyer. This is done through a simultaneous closing.
Hi thanks for the reply but the seller is not interested in selling his paper. I (the buyer) just wanted to know how to go about writing up the promissary note and how to go about the closing.
You can write a note and deed of trust or mortgage yourself. But, what if you don’t put the proper phrases in there. Issues like fees for late payment, recourse and acceleration need to be resolved. A title company can get you in touch with an attorney that can ask you the right questions and put it in the right format. You don’t need the title company unless you want them to check on condition of the title, and you do.
Is this reanly a 5 unit house for $35,000? potenial income?
Hi, yes it is a 5 family. Although it is small. Each unit rents for approx. 300-350 per month. It needs a little work on a couple untis and a couple are ready to go.
That pretty much answered my question except where can I get contract forms from for the purchase and the note? Thanks for your help. I am new to this