Owner Financing As An Option
Do you have a house that you want to sell? Some people consider selling their homes, and some people consider seller financing as a viable option. For those who have a mortgage on their home, you may be thinking, “Can I do owner financing in Georgia while I have a mortgage on the property?” In this case, the answer is yes. We receive this question on a regular basis, therefore we decided to provide an answer here… Continue reading this blog post, and we’ll provide you with an answer to that issue, as well as some methods for moving forward…
Options For Owner Financing Are Numerous
Homeowners who are considering selling their property have a number of options. Sellers have the option of listing their home through an agent or listing it themselves, or they can sell their home directly to a buyer. Many homeowners are also discovering a simple approach known as “owner financing” or “seller financing,” which allows them to sell their home to a buyer while collecting regular payments that eventually pay off the mortgage:
- A down payment is made by the buyer.
- The buyer makes regular monthly payments to the seller.
- When the agreed-upon amount is paid in full, the buyer becomes the legal owner of the property.
The reason why homeowners appreciate it is that it’s a terrific method to sell their homes as well as a great way to discover even more buyers – including those who may not be able to obtain standard bank financing. Home buyers appreciate it since it provides them with additional options and eliminates the need to negatively effect their credit score in order to purchase a home.
If you own your home outright, you have the option of entering into a seller financing agreement. But what happens if you owe money on your house? Perhaps you’re thinking, “Can I do owner financing in Georgia if I have a mortgage on the property?” If so, you’re not alone.
The quick answer is that it’s difficult to say.
Seller financing through the use of a mortgage
A “wraparound mortgage” is a type of mortgage that can be created in some states, in which you extend a mortgage to a buyer (typically at a higher rate of interest) while continuing making payments on your original mortgage to the bank. However, this is not permissible in all jurisdictions and in all situations, and there are extra stipulations that you should be aware of before pursuing this option.
Is it possible to do owner financing if I already have a mortgage on the property? – There are several options available to you.
If you are unable to sell your home using seller financing due to a mortgage, there are other options available to you…
There is a type of alternative known as rent-to-own that may be suitable for you. It has some similarities (such as the fact that you make regular payments and eventually own the house) and some differences (such as the fact that you do not own the house) (there might not be a down-payment and the buyer needs to qualify for a mortgage from a bank at the end of the pre-established rental term).
We encourage you to get in touch with us and tell us about your property if you are considering taking owner financing but still have a mortgage on your home. As real estate professionals with extensive experience in both buying and selling properties, we are aware of a variety of alternatives that you may not be aware of. We can either walk you through those alternatives and assist you directly, or we can put you in touch with someone who can assist you directly.