Updated almost 2 years ago on . Most recent reply
Seller financing with existing mortgage
Hi everyone, I have a property for sale and I've just been asked about seller financing. I do have some mortgage left on this property. Is it possible to do this in Canada? Do I continue to pay the bank and just collect payments from the new buyer? any insight would be great. Thank you.
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Typically you want to buy seller fi when the asset is fully owned by the seller. Not saying you would, but someone in your position could easily stop paying the mortgage even when collecting rents from the buyer on seller fi, you would eventually foreclose and the buyer would probably be in a tough spot to say the least.
Not saying you would do that but that is the risk from the buyer.
If you two are looking for a creative way to sell, maybe have a blend of having them buy Subject too and also seller fi your terms. I am not entirely sure what the laws in Canada are but a good community to ask about this would be the "Subject "To" realestate investing" page on Facebook, someone on there should be able to help you.
Best of luck on your deal!!