Owner financing or lease is a scam? I have excellent credit, large down payment?
looking to buy a home, California, Arizona or Texas, but independent, so no record of income in another state. I look at the owner financing, but is not secure their legitimate? Has anyone used this?
Many people use this form of financing to buy a property, especially for investors. How to make sure things are well made and recorded using an escrow companies and the title licensed in your state. You can choose at random these companies to use in your real estate purchase. # 1Rent the owner / Purchase Option / Leasing All are to form a variable a seller to sign a contract with a person who wants to buy the financing of the owner. This contract are generally expiration date. Expiration date is usually 2-3 years. Some may be longer, but it's the norm. Any such contract will a certain amount of your income that is paid to go towards a deposit on the property you buy the option contract of the contract. Make sure that the amount that the seller will go towards the payment detailed in the contract. Under this contract, the seller may or may not look at your credit as a buyer because the owner confident that apply for and obtain approval for a mortgage to pay it with him, having nothing to do with the property. The owner would have no special tax deduction, as well as evaluating the property until run successfully its option and the closing of the transaction. # 2 Wear Seller under this agreement, the owner of the house will serve the bank for you. You and the seller will achieve a sale price, the amount will rise on the property this year, the number of people is ready to leave the money before paying (Usually 5-10 years) could be reduced, the rate of interest, late fees for overdue payments. You and the seller must add something in the contract that the two might think it's important. The contract will include a date on which the two of you think you want to complete the transaction (usually 45-60 days) (may be increased or extended if both parties agree) Once the contract has been completed aware that the contract is signed. You could have this contract with an escrow agent or closing company title. Tell one or two of them enter into a sale by owner (FSBO) contract and want the transaction recorded properly in accordance with the laws of the State in which they reside. (You do not have a lawyer involved in the operation, unless your state requires lawyers to act as escrow agents.) Once A the Closing Escrow Agent have a copy of your contract staff prepare the closing signed guard Instruction of the trust for the seller and buyer to sign based on the contract between the two. If additional information is required by this application agent. You as the buyer would be required for hazards (fire) insurance and pay property taxes in the county since the time of assuming ownership of property. Normally, taxes are prorated. At the closing, the deposit and the title company will record the spelling correct in the house of the courthouse of the county where the property is located. The title company will also record a note and trust deed for the seller the amount of the mortgage and the other information required by the law of the State of the State. There would be closing costs involved in this transaction by the seller and buyer. Understand and know the charges, ask your escrow closing agent to prepare an estimated HUD-1 for both the buyer and seller and the buyer you would be required to make monthly payments of principal and the seller of the mortgage interest and as if Bank of America paid the money. Failure on your part to make the monthly mortgage payment, the seller can legally place a lien on the house and retrieve warranty. If you make mortgage after entering foreclosure, you must pay all costs of the seller before the foreclosure and mortgage reset If a bank would not make your monthly mortgage payment with them. The seller can and should run a credit report about you and your wife to see if ready to take that risk in this transaction. Once the transaction would close as any allocation of capital, including the appreciation throughout the property. You should contact your tax advisor and attorney regarding any legal or tax issues. I hope this was of some use for you, good luck. "FIGHT ON"