Owner FInancing on a Home with a Mortgage

[Arron Paulino]

I have been receiving inquiries for the purchase of one of the homes that I am selling and these buyers want to do owner financing. However, I currently have a mortgage on this property and do not really know how this works as I know this loan can be called due at closing. Does anyone have experience with this? Other offers have been cash, but low and not really enough to even cover the mortgage that is currently on this property. Any advice is greatly appreciated!

[Ken M.]

Quote from @Arron Paulino:

I have been receiving inquiries for the purchase of one of the homes that I am selling and these buyers want to do owner financing. However, I currently have a mortgage on this property and do not really know how this works as I know this loan can be called due at closing. Does anyone have experience with this? Other offers have been cash, but low and not really enough to even cover the mortgage that is currently on this property. Any advice is greatly appreciated!

Have your attorney put a WRAP together. Keep in mind, there is more to this than just a document. Do your underwriting upfront. Because California is a "whacky" state with rent moratoriums, and foreclosure moratoriums and other perverse things, you are in for an interesting ride if you follow through.