Can I sell my house using FSBO?

Question

Hi Awesome BP Members,

I'm trying to get a better understanding of FSBO.  I currently have a house with $100K loan balance.  I know people use Subject-to or wrap strategy to actually buy and immediately sell the house with seller finance.  So, I should be able to sell my house with seller finance, correct?

If you've seen any good article on this topic, please share it with me.

Thanks

Account Closed · Answer

Hi Donny,

If you're interested in selling it subject to the existing mortgage, please send me details, as I may be interested.

Thanks,

Kim

Lynn McGeein · Answer

You can read through your mortgage paperwork that you received at your closing to find out any due on sale issues that could potentially crop up if you change ownership.  If you search the forums for due on sale you will likely find several good threads on pros and cons of doing so.  Personally, unless I had the means to pay it off if the lender called the note, I would be extremely hesitant to put myself in that position.

Donny Widjaja · Answer

@Mike Cumbie,

You are correct, I'm trying to sell a house that I still owe money on, and I want the buyer to pay the loan to me based on my loan terms.

Mike Cumbie · Answer

Hi @Donny Widjaja,

I am a little confused to your question. FSBO is (For Sale By Owner). That just basically means you are selling something you own and not using an Agent or Broker. Which you can do for sure.

Seller Financing is where you hold the note and they make payments to you.

I think you may be asking if you can use seller financing on a house that you still owe money on, but not fully sure. If that is the question I am sure one of the financial wizards will know for sure.