1st Time Owner to Seller Finane

2 Replies

Okay ladies and gentlemen.So I need your advice. I just did my first owner to seller finance and I’m wondering if there’s anything I could’ve done better or or anything did I do wrong? I initially put 30k into the house to try and remoIdel it, but with contractor issues the cost just became to much. I sold A property to an investor he bought the house for 150,000 at a 7% interest rate for 12 months He has a monthly payment of 1400. With a balloon payment to pay the rest off which should be about 139k. He put 3000 down and the first months payment so 4400 all together. We did the deal through a attorney, we did not go through a title company because the investor didn’t want to since he was paying the closing cost. The house does not qualify for a conventional loan because of its condition. So my question is since this is my first time doing this type of transaction; what are the risk involved? (Pros and Cons)I’ve done a little bit of research but I’m looking for more insight for more season vets. Any advice welcome

Finance** sorry for the grammatical errors

It sounds like you're saying you own the home outright and sold it using owner financing.  If you had your own attorney handle it, then they should have insured that your loan is properly recorded, so not a lawyer, no legal advice, but I'd think that worst case, you'd need to foreclose and take the house back if he doesn't perform.   If it was his attorney, I'd check to make sure your lien on the property is recorded.  He's getting a 7% loan to flip it, so he's probably happy, and you've got your home sold and will likely have it paid off in less than a year, so may work well for you both.  A relative found out recently that the lawyer who recorded a lien for them put his law office as the notification address, not their home address.  10 years later when the guy stopped paying, they found out from the records' office that the home foreclosed and they never received notice because it went to the lawyer's office, now non-existent, not their home.  It was not a large balance and in second position, anyway, but it was frustrating as they were told they couldn't recover.  As yours is only 1-year until payoff, I don't think you'll have any issues like that.  

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