Help with Seller Finance/Owner Finance?

4 Replies

I'm a wholesaler in Miami Fl and when sellers call and ask for retail, I used to be forced to move on (mostly because the seller still owes a mortgage close to retail price). So lately ive been saying, yes we can give you full market but you have to seller finance/owner finance for 20 years.

Does anyone know how this process works? Does anyone have the contract for this type of deal? 

Would a mortgage assumption be even better? Does anyone have the contract for an assumption of mortgage? 

When would i get the deed? Help would be SUPER GREATLY appreciated. I literally have 5 sellers who are interested. HELP!

Get someone to draw up the note. I'm using a real estate attorney.

I use my state approved real estate contract. I know everything is legal. 

You get the deed when you close depending on how you're buying.

@Ana G. ,

Ana, I would hate anything to happen to you to make you lose that beautiful and gracious smile of yours. I would run to my nearest real estate attorney and preferably one that knows Dodd Frank and the Safe Act really well. Tell them about how you are going about doing your business and what you are telling sellers. 

@Shanequa J.

Ok so basically the note is the contract? Or are they two separate documents? And when do you close if you are paying the seller a monthly fee? I feel like I'm gonna have never ending questions. I think I would be able to figure it out better/easier if I had a sample contract.. Would I be able to get a glimpse of yours?

@Gilbert Dominguez

Haha thanks. I'm starting to think the only way to do this is to do just what you and @Shanequa J.

 are recommending and get an attorney written contract. But I still have so many questions about the process of a seller finance deal in general. I'm literally starting from scratch. I guess I have a lot more research to do.

They are two separate documents. The contract is the offer to purchase with all of the details, instructions, and terms in it between the buyer and seller. I give this signed copy to the closing company.

The note is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. This is what my attorney writes up. You can get a mortgage loan originator to do this instead.

Want to see my contract? It'll cost you. Joking. I use Texas real estate contracts. These are what real estate agents use. Google TREC one to four family residential contact. I wanted to use a custom contract, but every lawyer I spoke to told me they recommended using the state approved ones. They said If I absolutely insisted on using mine, the cost to make it Texas compliant wasn't worth the expense.

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