|
|
 Sparky
Posts: 13038
   
Location: I call the back seat on the short bus!! | What is common procedures? Can one have a buyer put sizable amount down first? No time to google. Just looking for quick inputs. Thank you!! |
|
| |
|
Miracle in the Making
Posts: 4013
| i do and have several owner finace
i have a great lawyer they must put at least 5% down depend on the price also its a 3 yr ballon note that i can call or the interest rate can be adjusted up
rates now are about 3 something i am get 5.5% apr i also lesson learned they must have 6 months ins pre payed i add the taxes and ins to payment
i am doing a foreclourse now guy was there 8 yrs but he hung me i trusted him big mistake now its stimiple you pay you stay miss 1 i will start
procedding i pay my bills they need to pay but i do have a lawyer do everything nice and legal
|
|
| |
|
 
| You turn it into a LEASE TO OWN and if they get behind 2 payments it turns into a strict lease automatically with double the payment and 30 day eviction notice ... no papers change hands or is filed at court house until paid in full.
Seller pays taxes and insurance .. rated into payments ..
You get a damage deposit and last months rent separate from down payment ..
|
|
| |
|
Veteran
Posts: 276
| A local title company can help you get everything set up and act as the middle man for you. They can help you decide on a rate, work up a contract and handle payments. I'm sure they will charge to do this for you, but it is probably worth your time and peace of mind. |
|
| |
|
Sparky
Posts: 13038
Location: I call the back seat on the short bus!! | Thank you for your replies!! Sorry I'm just getting back to this. So only 5% down is normal? |
|
| |
|
  Fact Checker
Posts: 16575
Location: Displaced Iowegian | brdrline - 2015-08-06 8:10 PM Thank you for your replies!! Sorry I'm just getting back to this. So only 5% down is normal?
I would NEVER sell my place with only 5% down. I think the banks require 20% now. They are more likely to "skip" if they can't make the payments and they have VERY little invested. |
|
| |
|
 Sorry I don't have any advice
Posts: 1975
Location: Sunnyland Florida |
First and foremost, there are NO rules or standard procedures with owner financing, as long as the financing complies with your state laws and is "legal". Therefore, whatever buyer and seller agree on that is legal, is acceptable.
That said, there are many pitfalls and areas of great concern for sellers and buyers when doing owner financing. I would strongly recommend you don't do this alone, unless you have a lot of real estate experience in your state.
|
|
| |
|
Veteran
Posts: 278
| I would never do owner finance, not only because of what has already been posted, but, you are legally on the hook. Make sure you have an attorney that will CYA. What if the people that live on your property get in a car accident or doing anything that can create a liability, bottom line they can come after the owner of the property for compensation above and beyond insurance claims, etc. Find out also if say someone is doing drugs, buying, selling whatever if they can confiscate YOUR property. Remember, that property legally is yours. I do know it falls both ways for buyer or seller. If you the owner of the property say gets in an accident and people sue you same will hold true for the people that are buying your property, they have no rights to stop the lawsuit and can lose whatever they have invested up to that point.
JUST BE CAREFUL with this kind of transaction, no one is protected if something happens on either side of the deal. |
|
| |
|
Sorry I don't have any advice
Posts: 1975
Location: Sunnyland Florida | KopieKat - 2015-08-07 3:35 PM I would never do owner finance, not only because of what has already been posted, but, you are legally on the hook. Make sure you have an attorney that will CYA. What if the people that live on your property get in a car accident or doing anything that can create a liability, bottom line they can come after the owner of the property for compensation above and beyond insurance claims, etc. Find out also if say someone is doing drugs, buying, selling whatever if they can confiscate YOUR property. Remember, that property legally is yours. I do know it falls both ways for buyer or seller. If you the owner of the property say gets in an accident and people sue you same will hold true for the people that are buying your property, they have no rights to stop the lawsuit and can lose whatever they have invested up to that point. JUST BE CAREFUL with this kind of transaction, no one is protected if something happens on either side of the deal.
The above statement does not apply to "owner financing". Owner financing is where the owner Sells the property to the buyer and the Seller holds the mortgage (owner financing). The property will belong to the buyer at closing, then buyer begins making the agreed-upon monthly payments.
If you entered into a Lease-Option or Lease-Purchase, then you are just "renting" the property until the agreed-upon time period, then you either have the OPTION to buy it at the previously-agreed to price, or if it was a lease-purchase, you PURCHASE the property at the end of the agreed-upon time period.
Everyone is protected on any of the above deals as long as the contract is done on the state's recommended contract and is approved by the Association of Realtors and the Bar Attorneys (in Florida this is called the FAR/BAR contract). It is designed to protect all parties and most circumstances. These contracts are revised every few years to include the maximum coverage.
|
|
| |
|
Miracle in the Making
Posts: 4013
| KopieKat - 2015-08-07 3:35 PM
I would never do owner finance, not only because of what has already been posted, but, you are legally on the hook. Make sure you have an attorney that will CYA. What if the people that live on your property get in a car accident or doing anything that can create a liability, bottom line they can come after the owner of the property for compensation above and beyond insurance claims, etc. Find out also if say someone is doing drugs, buying, selling whatever if they can confiscate YOUR property. Remember, that property legally is yours. I do know it falls both ways for buyer or seller. If you the owner of the property say gets in an accident and people sue you same will hold true for the people that are buying your property, they have no rights to stop the lawsuit and can lose whatever they have invested up to that point.
JUST BE CAREFUL with this kind of transaction, no one is protected if something happens on either side of the deal.
what you are talking about to lease to buy
ownerfinance is you go thru a lawyer its recorded at the court house they are the owner you are the bank you just need to make sure the payment
has the enough for the house and taxes and ins
your must be on the ins as lein holder also at closing they bring a copy of ins that os already paid for for 6 month or a year
I charge 1 to 1/2 % over the going rate right now I am at 5 amd 5.5 on my properties .
I am the bank I do good I have had my first foreclourse this month and intend to eat him alive we have forecloused on court huse steps
have sent him neccestary paper dne al nice and legal
but I always get min 10% down banks take as little as 0% to whatever also have them pull a current credit report
always always have a good real estate attorney
|
|
| |
|
Sparky
Posts: 13038
Location: I call the back seat on the short bus!! | I stink at getting back to this!! Perfect! Thank you for your advice so far. So is it unreasonable to ask for a bigger down payment? There's always that chance that they will trash the place. Then What? What if they do? even if you take them to court and win, if they don't have any money, you are still out. Correct? |
|
| |
|
Miracle in the Making
Posts: 4013
| brdrline - 2015-08-13 10:01 PM I stink at getting back to this!! Perfect! Thank you for your advice so far. So is it unreasonable to ask for a bigger down payment? There's always that chance that they will trash the place. Then What? What if they do? even if you take them to court and win, if they don't have any money, you are still out. Correct?
pretty much i am in that situtation right now
but on the flip side i have made good interest money too..
i have had renters that are great and some suck i have had good luck at courts i haver garnished wages
i am now getting ready to go to court on this foreclourse i can tell u more on in in oct
|
|
| |
Folks on-line