What happens if the owner of a property wants to sell you a property for less than he owes? Would you , the buyer, be on the line for the mortgage? Could the buyer face legal problems?
Unless the owner of the property has permission from his lender to sell for less (ie the bank has agreed to a shortsale), or he has the funds to make up the difference between the sell and the mortgage, then you can’t buy it.
If the mortgage is not paid in full, then as the buyer, you can’t get clear title to the property. So yes, you’d have legal problems.
Raj
If you do a standard RE closing, the mortgage that the owner currently has will have to be satisfied or the property will not close. If the seller agrees to a sales amount that is less than the amount owed to the lender, someone will have to come to the table with a check for the difference or the transaction wil not close.
Keith
Thanks for the info guys.