I need some help! I have closed on 2 properties both with seller financing for a 30 year mortgage at 7% interest. But the loan balloons in 2 years meaning that I would have to have the loan paid off in 2 years. I now have the funds to make a balloon payment to close out the loans but I wanted to know the official process on doing this? Should I reach out to the title company that did our closing and wire them the funds to wire to the seller? Do i just wire it to the seller myself?
Also, I spoke with the title company when the seller financing payments first started and they said they do not keep track of how much interest and how much of the actual loan amount is paid each month so the only way for me to know how much I have left to pay on the house is by using an online mortgage calculator like the link below.
All of this sounds really sketchy and unofficial to me. I just want to make sure I get the house paid off legally and go about it the right way. Thanks in advance for all your help!
Hey @Darsh Patel
You need to get an attorney for this. He would determine precisely with the seller the settlement figure required to pay off the outstanding loan, agree to a settlement date, ensure the lien is released, everything is recorded with the county and work out the other details which need to be done.
@Darsh Patel You will request a payoff demand or statement from the seller or any servicer of the loan that they are using. Look over the demand and see if you agree. If so, pay it off, if not, take it up with the seller and get to an agreement and then pay it off.
The seller should record some kind of satisfaction document with the county. I would call the county in advance, maybe even point them to your recorded contract and they should be able to tell you what kind of document will need to be recorded as a satisfaction of the contract.
I'm assuming you are already recorded on to title as the owner? If not, that will need to happen as part of the overall process.
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