Posted by stephanie on July 14, 1999 at 11:30:22:
It’s nice to know that I am not the only one a little confused by that!
Perhaps we are looking into it a little deeper than we should?
I would like to have an answer to the question!
gliddenx4@ttlc.net
Carlton sheets questions - Posted by Rod
Posted by Rod on May 25, 1999 at 16:02:21:
I knew nothing about real estate when I bought Carlton Sheets’ course. I am currently going through the course and have a few questions. I don’t understand how the seller gets a second mortgage and carries the financing and I own the home. Do I simply assume the mortgage at close or do I just make the payments and the mortgage stays in the sellers name until the mortgage is payed off? Please help!
Re: Carlton sheets questions - Posted by Jeff (FL)
Posted by Jeff (FL) on August 01, 1999 at 19:50:16:
Rod,
You’ll own the home because the title will be recorded in your name following closing. You give the Seller a 2nd note (mortgage) behind any comercial lender. Generally speaking, this 2nd mortgage is usually the Seller’s equity or a portion thereof. Unless he owns the property free & clear, the majority of your financing will be in the form of a 1st mortgage obtained through a commercial lender.
The chances of your Seller offering a “non-qualifying” assumable loan are slim. The banks stopped making them about 10 years ago. Yes there are a few still out there which haven’t long since been refinanced, but you would have to come up with substantial equity (or) convince the Seller to hold a 2nd as discussed earlier. And banks want to see some of your money in the deal anyway.
My advice is to never allow a seller to hold his original mortgage and you “just make the payments until the mortgage is paid off.” What would you do if a substantial lien was placed on the property while you were paying it off? What would you do if the Seller decided to sell the property? Where would you be if the original Seller died, and his heirs had no knowledge of your arrangement? Where would you be if the original owner just stopped making his mortgage payments? And these are just the tip of the iceberg. Some Buyers get into land contracts but they are risky for even seasoned investors. As a beginner, stay away from them.
Good Luck,
Jeff (FL)
Re: Carlton sheets questions - Posted by Tyrone
Posted by Tyrone on June 04, 1999 at 12:26:42:
I just purchased the course and basically have the same question. If you have found an answer on that question please let me know and perhaps we can start keeping in touch just to try and answer each others questions.