Updated over 6 years ago on . Most recent reply
Seller financing with no equity
Would you be able to do a seller financing deal With a SFR you have a mortgage with little to no equity in?
Such as a home you purchased for 200,000 And are selling to someone for near the same price of $210,000 with a slightly higher interest rate than your mortgage?
Most Popular Reply
Sam it’s a lease option and that would probably be his simpler solution. Good point for you to point that out.
Joe you’re deep :) I know what a first, second etc is:) you have a way with words.
(I have done many wraps personally)
Corey... You all really what a wrap is due to your long post about it. Quick over view without a lot of verbiage
1. You have to get insurance just right and not all insurance Agents know how to write wraps.
2. Your still on the hook to pay even if your buyer doesn’t.
3.It should be serviced thru a note Servicing company to protect the buyers as well and the Note Servicing company will pay the underlying Note each month and direct deposit the difference into your bank account.
4. Correct disclosures at closing.
5. If taxes and insurance is escrowed it is a pass through payment to the buyers and you need to be able to explain this to buyers.
6. If buyers stopped paying you will need to start paying the first Note and forclose.