Owner financing option by giving a down payment for mortgage

[Jacob Budzynski]

Is it possible to give a down payment to a seller who still owes on a mortgage for a property, to then seller finance the rest? Ex. 10k left on the mortgage, 10k down payment, seller now owns free and clear, seller is now able to owner finance.

[Brandon Sturgill]

1- Secure contract with purchase price and terms

2- Send contract to title (search and insure)

3- Draft note and mortgage (you'll need a lawyer to do this- less than $500 likely)

3- Seller uses proceeds (your down payment) to pay-off  the lien (The title company will handle all this)

4- Close the transaction

5- Establish payments to seller

You'll want to make sure there will not be a delay between the payoff of the 1st lien- executing the "lien release" and closing your transaction- will require coordination. Just let the title company know all the details up front and they will be able to sort it out. They may prefer a slightly different sequence of events...

Have you set purchase price and terms?

@Jacob Budzynski