Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
The more I look into this the more little questions I have. Can a seller offer you seller financing if there is a current mortgage in place? I'm assuming the preference is no. However if they had one wouldn't you want to see a mortgage statement every month to make sure that they are paying it down and not screwing you over?
That basically is Sub To financing. Since the original mortgage/lender typically has lien rights and is on title, you are going to want that mortgage tied to the seller financing agreement. Additionally, relying on the Owner to pay the underlying is risky. We always use a third party service to pay the mortgage statements so we know they are getting paid.