Buying & Selling Real Estate Discussion

User Stats

12
Posts
7
Votes
Deangelo Mccants
  • Flipper/Rehabber
  • Mobile, AL
7
Votes |
12
Posts

Buying a house from someone who owner financed

Deangelo Mccants
  • Flipper/Rehabber
  • Mobile, AL
Posted Sep 7 2019, 08:29

I have a pending smoking deal on a house. The motivated seller has owner financed the house and has completed about %80 of the renovations. My question is if and how can they sell the house if they are not the titled owner? 

User Stats

156
Posts
102
Votes
Herndon Davis
  • Lender
  • Ft. Lauderdale, FL
102
Votes |
156
Posts
Herndon Davis
  • Lender
  • Ft. Lauderdale, FL
Replied Sep 7 2019, 09:27

They should've been titled the owner when it was financed with the deed in their name and the original owner holding a lien against the property until it is paid off just like it is done with a normal bank financing situation.

This is a often the problem with Private seller financing. A lot of times the owner of the property does not want to sign over the deed until the property is fully paid off  as leverage.

But lien is just as strong. NEVER go into a seller finance situation without getting the deed in your name.

In your wholesale case you will need to look at the contracts that were signed between the original seller  and the person who you are buying it from.

You can still do a double closing but you need a title company to sort through the mess of paperwork to make sure it's done correctly.

User Stats

12
Posts
7
Votes
Deangelo Mccants
  • Flipper/Rehabber
  • Mobile, AL
7
Votes |
12
Posts
Deangelo Mccants
  • Flipper/Rehabber
  • Mobile, AL
Replied Sep 8 2019, 07:11

Got it, thanks for the response