Thank You for the Advice...Still More Questions - Posted by Kevin

Posted by dewCO on November 13, 2000 at 23:41:32:

You if the seller carries all the financing. The seller is the bank. Seller deeds you the property in exchange for your promise (the note or mortgage) that you will make all payments on time. If you don’t, seller forecloses.

Thank You for the Advice…Still More Questions - Posted by Kevin

Posted by Kevin on November 13, 2000 at 21:38:12:

Thanks for everyone who ansered my previous question. I see now that it is possible to buy no money down only IF the seller carries a note. All the duplexes that I have looked at the current owner wants cash. NO EXCEPTIONS! If I ever do find a seller willing to owner finance then who really owns the property? Seller? or Me?

Here you go … - Posted by Jack Compton

Posted by Jack Compton on November 14, 2000 at 24:04:11:

Kevin, unless you enter a Contract For Deed, the seller that carries back a mortgage (financing the deal) you become the Equity Owner. This simply means you have an equitable interest in the property you’ve bought. In effect, you are the new owner, and the LEIN HOLDER (the previous owner carrying the mortgage) is holding legal title to the property as collateral. You can compare it to a new car purchase. The bank holds lein on the title until you pay off the car loan. This is the same concept, only in the case of pledged property, it is mortgaged as security; but you become the legal owner as far as being able to re-sell, take tax write offs, pay taxes, insurance, etc.

If you look at the Deed of Trust, it’s a loan instrument used in some states in lieu of a mortgage. But it means the same thing. And when you pay off your property you will receive a DEED, which is simply a piece of paper that (when filed) evidences your ownership or title to your property. When this happens, you then hold clear legal title to it. So keep in mind that “Deed of Trust” and mortgages in general are loan instruments that provide equitable ownership, but not “True Ownership” until all leins are payed off. —Jack