Updated almost 13 years ago on . Most recent reply
Boiler Plate Form for Owner financing?
HI,
I'm under a bit of time pressure on this, so I'll ask without thoroughly searching the forums first - apologies if this has been dealt with previously!
I have a property under contract but loan approval is dicey (I'll share the story some other time - basically, I have a bit of a "disagreement" with the lender). I have spoken with the seller and he is willing to take back a note for 90K (purchase price is 121K). This is FSBO and no realtor involved. I have never done owner financed deals, so I don't really know what to offer and what paperwork I'll need. I was thinking that I would offer a 30year amortization schedule with a 5 year balloon payment. 5% interest. Is this reasonable? I think the seller will take that.
Is there a standard contract I can access or do I need to get the lawyer to draw one up?
Also, I was thinking about offering to pay for a mortgage service company but realized that they charge up to 0.5% (of outstanding principal). I think the seller would be fine without the mortgage service company - is there any reason then for me to spend the money?
Thanks much for ANY feedback - again, I don't usually like to rush my learning but I may have to make an exception for this one.