How does owner financing work when you are trying to buy a home?

Question

i have been offered a very good deal on a 3000 sq. ft. home. the owner died and his niece had it appraised and it appraised at 50,000. she wants to quick sale and offered it at 30,000. my credit is lousy(472) and i can't get a loan from anyone, even family. i don't want to pass this by and i don't have time to find investors, what are other options?

Answer 1

Owner financing means the person selling will finance the deal. Sounds like from what you have written, that they just want to get rid of it  leading me to believe that hey would not consider financing it. BUTTTTTT , it never hurts to ask. Ask the seller if they would consider financing it. You give them an agreed downpayment (usually 20-30%) and they will carry the balance. In other words you will make your payments to them. It all boils down to whether they OWN the property or are still paying for it, whether or not they just want TO SELL IT and get rid of it as a quick sale, or whether they are willing to CARRY THE BALANCE to be able to sell it quickly. One reason they might want to sell it quickly is that there is still money owed on it and they cannot afford to carry both their mortgage and the new one. They may still be able to sell it to you on contract but keep in mind that if you get behind, they are needing the money each month and will probably be more apt to foreclose on you than a finance company would.

Good Luck!

Answer 2

I have met the similiar problem before -- still a little bit annoy,here is a good resource that help me out.http://home-mortgage.online-tips4u.info/...

Answer 3

.   If you buy for $30,000 and put $3,000 cash down, you need $27,000.  You can borrow it from the bank and make payments to the bank for 30 years.  Or you can "borrow" it from the seller and pay her for 30 years.  THe 2 of you decide what interest rate.  She might want 7% and you want 5%.  Once you agree, you go to the escrow company and tell them the price and interest rate. They will make all the papers for you to sign. YOu sign.  You pay the $3,000 cash.  You are the new owner. Don't forget to make the payments.

Answer 4

can not happen. Even if the owner was dumb enough to owner finance to you. your poor credit and probable court judgments could be attached to the title to the home. You did not pay your past obligations so what makes anyone think you would make the house payments.  

Answer 5

I suggest going and talking to a realestate broker becuse they can tell you the pro's and con's of every possible way that might be available to you.

Answer 6

472??!!!!!!  She's nuts if she sells it to you with owner financing!

I hate to tell you this, but with a score like that, there isn't enough time in a LIFETIME to find investors!

Where IS this 3000 sq ft home for $30K?  That's a ridiculously low price, as is $50K, unless it's falling down, or in an absolutely HORRIBLE area - or both.