I came across a motivated seller. The numbers and situation meet my criteria. He is behind on taxes and some bills, but is current with his mortgage. The problem is his mortgage is with a private individual, not a bank (someone did an owner finance arrangement with him). He is on title.
I suppose the main thing to watch out for is if this is a mortgage wrap situation where the original owner still has a loan with the bank?
I assume you're trying to buy the property. Yes, I would run a title search if that is feasible. Depending on your county you may be able to look up deeds online. You can see if there was ever a release for the original mortgage, or if there is another mortgage still there.
I would also request a payoff quote from the private mortgage.
The mechanics of a straight purchase won't change. The title co. just needs to receive a payoff and fund that to whomever has funds outstanding. If that is the seller and an original loan under a wrap ect it won't matter. They won't close it until the receive the correct paperwork.
@Sathish Sekar Thanks. The county this property is in appears to be difficult to search the records. Takes me around to some paid subscription in order to access. But I do have PropStream and looked it up there. According to that there is an original loan under a wrap.
@Matt Devincenzo Well I asked my question here on this forum because this deal might make a better creative financing arrangement rather than straight purchase. But it sounds complicated when there is already an additional layer. If there is an original loan under a wrap, not sure if I should do another wrap (or maybe assume the wrap loan?).