All Forum Posts by: Abigail Joanna

I thought you said she texted you about it? Your inspector saw the old roof. You had a chance to negotiate it, remedy it. It is very common to have two layers of roofing, although I'm not sure installing a comp roof over a metal roof is a best practice. When sellers install a second layer of a new roof over an existing roof, they still refer to it as a new roof.  You saw the old roof with your eyes during escrow I'm assuming. (Let me know if not). And did the inspector go in the attic? Water never hides. In dry weather you'll see staining. In wet weather you'll see water. Or you'll smell it or the inspector's moisture reader will detect it. 

Have you reached out to the roofer? The problem for me starts there. Why a comp roof over an existing metal roof? What warranty remains? Get out here and fix it. They would have been my first call. 

She disclosed everything, so it's on you. Was there a transferable warranty from the contractor who installed the roof? Even if not, get their name and get them back out to address the roof. 

Quote from @Abigail Joanna:

I don't know how to approach this. I'm sure she wants to pocket the difference between my down payment on the owner finance and the remaining loan amount.

Can someone help me understand what "ask your owner finance lender how much she wants to pocket at close" means?

Your comment: "ask your owner finance lender how much she wants to pocket at close"

It's a negotiation technique.

Owner financing can be set up multiple ways. You are asking the seller that's doing the owner  financing; "how much they want in their pocket at closing". Say they have $200,000 in equity but they only need $50,000 and are willing or want to take payments on the rest called a "carry back". Then you have to decide on interest rate, term, balloon if any and so on for the remaining equity.
That is compared to the normal situation where the seller expects all of their equity at closing with no carry back.

Your money being secure wouldn't be the issue when obtaining owner financing. It would be convincing the seller (and lender) that their money will be secure. Best way to do this is by giving them a first position trust deed (or mortgage depending on the state) on the house and a note and maybe a personal guarantee. 

Quote from @Abigail Joanna:

New to this. How do I obtain owner finance but make sure my money is secure during option period and that the agreement is legitimate?

Thank you in advance!

Seller financing does not have "an option period", you are referring to lease to own. True seller financing (not lease option or CFD) you are the owner of the property and the prior owner is the lender and you are the borrower.

The transaction should be done just as if you were getting a loan from bank of america - meaning you have a title company and escrow etc. handle the transaction, the only difference is the lender is the seller.