Partial owner financing on a sale
Hello everyone,
my wife and I are trying to sell one of our properties to my sister in law. Given that there won't be any commission fees, we would be happy to sell it for $195k. We currently owe $90k and my sister in law only got press approved for $150k. We would like to sell it because we are planning to build soon and will do it with cash, and we would like my sister in law to have her own place. Is there any way to sell for $150k and do the rest in owner financing? Is there any other alternatives that we can explore to get the remaining $45k like some sort of note? If so, we would like a servicing company to mediate it, and if so, would the title company be someone to go to for a note to be serviced? I'd appreciate any suggestions, as we would like to find a way to get this done. Thanks
yep you can create a 2nd position mortgage and set it up servicing like you stated
seller carry
Thanks. I figured it would be possible, but I've never had to do it before.
@Luis Prieto a second as an owner carry should work fine. Just make sure the lender will still fund it. However if she is only approved for 150k will she be able to make the payments on the first and the second? If not will you write it off, or foreclose on her?
It can be great to help family, but set the expectations up front and get to an agreement in writing prior to closing.
Some escrow companies have a long term department where they can service the loan for yall.
Best of luck!
Thanks Chris. We are not concerned about affording the payment since her daughter is graduating college in about 2 weeks. Our title company will service the owner carry, which will make them liable and should facilitate things. Thanks for the insight.