If seller has a mortgage can we still negotiate seller financing?
Greetings Everyone,
Thanks for clicking on my post!
I am in the initial process of creating a "seller financing offer" to a homeowner who is interested in selling a single-family residential home. The backstory is that this house sat on the market for a long time and the frustrated sellers took it off the market after a buy/sell agreement fell through at the last moment as the buyer backed out losing their earnest money. The owners live in the house I am looking to put an offer on and would like to continue to live in it upon selling as tenants. This works well for me as I am looking to purchase the property as an investment property and would gladly rent it back to them.
The owners are looking to build a new house in the country-side and live in the current property while they build and perhaps would move into a camper on the lot while they build if the property needed to be vacated but wouldn't be ideal as the couple has a daughter.
The bank won't finance me on this deal as I won't qualify for another mortgage in the next few months as I just closed on another property.
I haven't presented any kind of offer or mentioned anything about seller financing yet. My questions for discussion are as followed:
1) If the owner/seller still has a mortgage on the property can I still engage in seller financing? Do I somehow get the mortgage transferred over to me?
2) Most likely the seller/owner will need the capital from selling this property to build a new place. It might be difficult to convince them to an agreement. Any advice on how I can pitch a win-win for both parties?
I am guessing they will need to drill a well, bring in electricity, initial dirt work, etc. I do have cash and could offer up to 20% down which should get the ball rolling on their residential development. Perhaps I allow for the owners to live in the property during the duration of the seller-financing terms if they choose while they build? How long would the seller financing terms be?
3) I have a lawyer who has written up contracts for me, should I go to him to write up a seller-financing agreement?
4) A real estate agent did bring this opportunity to the table, how does she get paid? Can she represent both parties?
Thanks for all the advice, this property checks all the boxes for me in an up-and-coming market of SW, Montana!!!
Corey