Author Topic: looking for some info on an owner carry opportunity  (Read 3024 times)

rick1028

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looking for some info on an owner carry opportunity
« on: January 22, 2014, 10:11:38 PM »
Hi guys my name is Ricky,  I have to option to purchase (through an owner carry loan) a home that I have been renting.  Unfortunately I have a foreclosure that is not quite 3 years old yet so I a don't have the option to go a more traditional route.  Any way here are the details of the purchase.

the house has a value of 115k-125k.  My landlord is willing to sell me the house for 105k. I know it seems like I am getting a good deal and I think that I am.  I had the comps pulled by a local mortgage lender and realestate agent.

He currently owes 82k on the house with a 8% interest rate.

The terms are 10k down and the other 13k by the end of the year.

I take over mortgage payments, taxes and insurance which is roughly the same as what Im paying already.

(my 3 years will be up in June than I should qualify through fha)

So at the end I should be financing around 75-78 k.

We will be writing up the contract with the title company so that everything will be legal.  But I want to know what all recommendations that you might have for me?  I would like the option to sell the house if I need to, because one of the clauses that he wants to add is a 10k increase in sale price if for some reason I am not able to get financing after one year.  Thanks for any advice.

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Re: looking for some info on an owner carry opportunity
« Reply #1 on: January 22, 2014, 10:22:14 PM »
If the lender finds out there has been a transfer of title, they may enforce the "due on sale" clause and call the mortgage.

See if you can rent until you can qualify for a mortgage in your name.

dragoncar

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Re: looking for some info on an owner carry opportunity
« Reply #2 on: January 22, 2014, 10:26:44 PM »
If the lender finds out there has been a transfer of title, they may enforce the "due on sale" clause and call the mortgage.

See if you can rent until you can qualify for a mortgage in your name.

Yeah... I don't know about this.  It depends on how it's structured.  Is the mortgage company letting you assume the mortgage?  If so, it could work (but I don't know if they would agree given your credit history).

rick1028

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Re: looking for some info on an owner carry opportunity
« Reply #3 on: January 23, 2014, 12:18:01 AM »
If the lender finds out there has been a transfer of title, they may enforce the "due on sale" clause and call the mortgage.

See if you can rent until you can qualify for a mortgage in your name.

Yeah... I don't know about this.  It depends on how it's structured.  Is the mortgage company letting you assume the mortgage?  If so, it could work (but I don't know if they would agree given your credit history).
That's something i need to look into.  The landlord needs the money and is going to sell regardless.  I've been renting for the last few years so he is willing to give me the option.  Like I said, I tried the traditional route first but I'm still a few months out.  The lender is the one who brought up this idea.  He seems to think that we shouldn't have problems considering the interest rate on the loan is kinda high right now or something like that.  He said that they would be more likely to deny it if current rates were higher than what they were charging at the time of the transfer.   That being said how would I go about finding out before I get to far into this?  The way the mortgage guy explained it is that I would just be added to the title.

dragoncar

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Re: looking for some info on an owner carry opportunity
« Reply #4 on: January 23, 2014, 12:32:39 AM »
If the lender finds out there has been a transfer of title, they may enforce the "due on sale" clause and call the mortgage.

See if you can rent until you can qualify for a mortgage in your name.

Yeah... I don't know about this.  It depends on how it's structured.  Is the mortgage company letting you assume the mortgage?  If so, it could work (but I don't know if they would agree given your credit history).
That's something i need to look into.  The landlord needs the money and is going to sell regardless.  I've been renting for the last few years so he is willing to give me the option.  Like I said, I tried the traditional route first but I'm still a few months out.  The lender is the one who brought up this idea.  He seems to think that we shouldn't have problems considering the interest rate on the loan is kinda high right now or something like that.  He said that they would be more likely to deny it if current rates were higher than what they were charging at the time of the transfer.   That being said how would I go about finding out before I get to far into this?  The way the mortgage guy explained it is that I would just be added to the title.

Well if the lender suggested it, maybe it'll work.  It's still the kind of transaction where I'd want someone who really knows property/contracts to scrutinize everything. 

rick1028

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Re: looking for some info on an owner carry opportunity
« Reply #5 on: January 23, 2014, 01:08:16 AM »
Sorry that was a misleading statement on my end.  I meant the mortgage lender that I went to for advice recommended this type of loan.  After reading up some on this clause I think that I really need to get some more advice as to some other possible options. 

rick1028

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Re: looking for some info on an owner carry opportunity
« Reply #6 on: January 23, 2014, 01:13:14 AM »
Would it be smart for my land Lord to go to his mortgage company and ask them what there policy is?  Or should I just go to a title company and see what they say?  Thanks again for all of the advice.  I'm just in a tough spot.  I have a pregnant wife and a two year old daughter that I really don't feel like moving around multiple times this year.

arebelspy

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Re: looking for some info on an owner carry opportunity
« Reply #7 on: January 23, 2014, 07:33:06 AM »
Their policy is they can enforce that if they want.

They probably won't.

Still, I'd notify them and give them a chance to respond.
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rick1028

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Re: looking for some info on an owner carry opportunity
« Reply #8 on: January 23, 2014, 12:14:37 PM »
Ok Thanks for the info.