What is the difference between buying a property via Owner Financing and Subject to Mortgage? ?

Question

They seem to be the same.

Answer 1

THE SELLER IS ACTING AS URE BANKER. USUALLY DONE WHEN THE SELLER IS HAVING TROUBLE SELLING HIS PROPERTY.  OR THE BUYER'S CREDIT IS TOO POOR TO GET A LOAN.  AT TIMES THE SELLER HOLDS THE TITLE UNTIL THE PROPERTY IS FULLY PAID.  ALL ORAL AGREEMENTS SHOULD BE MADE A PART OF THE SALES AGREEMENT. WHAT HAPPENS IF EITHER PARTY DIES?  WHAT HAPPENS WHEN WATER BACKS UP AND FLOODS THE PROPERTY AFTER THE BUYER TAKES POSSESSION.  HAS THE SELLER TOLD U WHAT IS REQUIRED BY LAW TO BE MADE KNOWN AT TIME OF SALE?  WILL THE SELLER PROVIDE U WITH  A STATEMENT SETTING UP EXACT TERMS - GIVE RECEIPTS - EVERYTHING IN WRITING AND NOTARIZED TO PROTECT BOTH PARTIES TO THE SALE.  THERE IS A LOT MORE THAN PAYING MONEY AND GETTING RECEIPTS.  WHEN DOES TITLE PASS?  HOW ABOUT TERMITES?

Answer 2

Owner financing literally means the owner of the property will let you make payments to him, almost like rent. It means you don’t have to secure a mortgage to buy the house right now. I’ve seen it most often done when someone needs to clean up their credit in order to be able to get a mortgage in a year or two.  

A private owner gets much more leeway than a lender on what sort of buyer financial issues he can accept.  Getting a mortgage involves meeting a lender’s criteria for income, credit score, debt to income ratio, down payment, etc.