This might be a stupid question but I want to ask how this process goes about… When you are buying a house from a seller does the original mortgage get transfered to me? For example if the owner has 100,000 left on the mortgage and I buy it for 300,000 and sell for 370,000 do I pay the remaining 100k? Its been a long night and I think I am confusing myself but I want to know where all the money goes. Ok Just thought about it more… if I do owner financing I can pay the owner the price agreed and he pays the mortgage off right? Now if I buy it from him without owner financing do I get another mortgage??? I am confused ??? Please help me out
Unless you buy “sub2”, you will pay off the seller’s note when you purchase the property.
If he seller finances, he will use the income stream that you pay him to pay the underlying note and keeps the balance for himself…
Remember, when he does this, the loan is subject to be called due and payable in full by his mortgage company for violating the due on sale clause (DOSC).
My personal recommendation is, that before you get into a $300K deal, you gett better acquainted with REI! If you don’t understand the fundamentals (which you clearly seem not to…), you will be “easy pickin’s” for some of these guys…don’t do a deal that you don’t fully understand - EVER!
Confusion can cost you money. I agree with Keith and his personal recommendation. If you don’t have a full understanding of what is going on, I suggest that you educate yourself a little more with how RE works.
I also suggest that you join a REI club in your area and gain some education there. You can network with people and learn more about your market. You can also continue to read the posts here on this forum and ask questions and gain more understanding.