Seller Finance Question

[Alexis Zion]

Hi All 

I think I have a simple questions 

To get Seller Finance does the owner have to own the building out right?

Or said another way to get Seller Finance / Owner Finance can the seller have a mortgage on the multi-unit building ?   

Thanks in advance 

[Skyler Smith]

I bought a property on seller financing and the seller had a loan on it, making mine a wraparound mortgage. The title company that was handling the payments would make the seller's mortgage payment and paid the seller whatever was leftover from my payments.

The seller will need to check their loan for a "due on sale" clause, which is designed to prevent an owner from offering something like seller financing, requiring the loan be paid off in full when the property changes hands.