You are on the right track, but there many variables that need to be addressed. First, yes it is done legally everyday, no special magic there… Standard seller carryback purchase money mortgage technique.
How you do it is predicated on your states legal framework, but is easy enough to learn in a quick discussion with a local attorney or title company (depending on who insures titles in your state). It is also predicated on your needs, the buyer’s needs, and most importantly the buyer’s qualifications.
Your needs will dictate the most efficient structure for the deal. Email me with some more details, and I’ll try to steer you in the right direction, and what to do in your state.
I am selling my condo FSBO and thought I would attract more buyers and be able to get a better price if I assisted in financing. The FMV for the property is app. 68-75K. What I had in mind is to settle on 72K for a selling price and receive between 60-65K at closing and create a mortgage for 12-7K.
Does anyone think this is a lousy idea? How can this be done legally? What do I need to do in order to make this happen? (do I need a lawyer, certain forms, etc.?)
The information on this sight is so helpful. Thank you.
Check with a few lenders in your area and see that this condo can be sold with an 83% first and then a $12K 2nd, which will be CLTV (Combined Loan to Value of 100%). And how good of credit will such a buyer need?
It’s the lender making the first who gets to say yes or no to your scenario.
The title company should be able to help you fill in the note to you on your 2nd and your deed of trust, and they are probably available in stationary stores that carry real estate forms in your area, if youwant to look at them before hand. Matter of fct if you get out your paperwork, you will see a note and deed of trust (or mortgage) from when you purchased, most likely.