This topic contains 9 replies, has 6 voices, and was last updated by Anonymous 8 years, 2 months ago.
- May 5, 2011 at 11:06 am #204193
existing mortgage? I am getting ready to buy a home and land from a family member, through owner financing. The land and house currently has an existing mortgage, what will happen if the owner dosent pay the existing mortgage? Im not sure how owner financing works.
- May 6, 2011 at 1:31 am #259021
I would ask the family to do a letter of authorization for permisson to speak with the lien holders. That way you can call the lien holders every month to make sure the payments are paid, and also I would ask the lien holders if the mortgage was assumable ( meaning where you can legally take over the mortgage)
- May 6, 2011 at 7:18 am #260111
Even if you make all your payments on time. If the homeowner does not make his / her payments THEY will be foreclosed upon.
YOU will not get any credit for ANY payment you have made, because the contract for mortgage is not with you. The contract for mortgage is with the homeowner and the lender.
I would not live under that situation. You cannot use that as credit history.
- May 8, 2011 at 11:18 am #266960
You have to assume the mortgage, so that you not the vendor pays it.
The mortgage can be non-assumable meaning that to buy you have to refinance and pay any early payment penalties if you pay early.
The former owner has to take back a second (or third etc) mortgage for their equity.
Any down payment then goes to reduce the second mortgage or to pay down the first, as agreed by buyer and seller.
- May 14, 2011 at 12:23 am #275515
You’re asking for trouble. I wouldn’t get into any such deal without the advice of a real estate lawyer.
- May 19, 2011 at 8:22 am #430307
No, you can’t, only full doc, FHA with 5% down.
- May 19, 2011 at 8:23 am #430308
talk to a mortgage broker – they are the only ones who can tell you what kind of programs are available and what you qualify for.
- May 19, 2011 at 8:34 am #430309
Go to a broker! Don’t email anyone from this site!
- May 19, 2011 at 8:37 am #430310
Banks are presently changing requirements because of the state of the markets going from distressed to severely distressed. Last I heard Wells Fargo used to accept 90% LTV max. Now, they are restricting borrowing to 75% LTV.
- May 19, 2011 at 9:00 am #430311
Most 95% LTV (loan to value loans) are not available at this point. I have been doing mortgages in Texas for over 8 years, and this is by far the hardest time i have ever had approviing people with a 660 fico score, even with full doc. Suggest you try to increase your credit score to 680, by perhaps paying down some of your credit card debt, or perhaps lowering your debts. 680 fico, can get you into a Fast & Easy loan with Countrywide home loans, which requires 5% down, and no paper work to prove income. Very easy loan. Good Luck to you!!!!
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