Owner Financing - What if the lendor dies?

[Jacob Chapman]

Hey BP!

So I was looking into getting into some owner financing deals, and I have found that for the most part, most people who are willing and able to owner finance are doing so because they want the monthly check each month as they grow old.

My question is this.. statistically speaking if the owner is up there in age (80's), if I get a 30 owner finance with well enough terms that I would want to keep it and not refinance, they will not be around the whole 30 years...

So.... what would happen? would the loan go to their nearest kin? Go into probate? if they have no relatives, then what?

It seams pretty straight forward if I were renting, the family of the diseased would just sell the property, but in this instance... I own the property, they just have a note on it..

What are your thoughts? or would it be complicated enough that you recommend steering clear of it? I'd prefer not to since I see helping an older individual with solid income as a good thing, and they are not likely as picky on end price as long as their monthly is sustaining them.

Any info would be greatly appreciated!

[Wayne Brooks]

So done will inherit the note, the terms won’t change.  But, don’t expect a seller to finance for 30 years without a balloon in 2-7 years.