Do you have a house to sell? Perhaps you’re thinking about selling, and maybe you’re thinking about seller financing. But if you have a mortgage on your house, you might be wondering, “can I do owner financing if I have a mortgage on the property in Greater Cincinnati?” Or you might have questions like: Who holds the deed in owner financing? Who pays property taxes on owner financing? Can I sell my house on land contract if I have a mortgage? When you sell a home what happens to the mortgage? We get this question a lot so we decided to answer that question here… To know more about the question “Can I do owner financing if I have a mortgage on the property?“ Then keep reading this blog post and we’ll answer that question and give you some strategies to move forward…
You have options
Homeowners who are thinking about selling have several options. They can list their home through an agent, or they can list it themselves, or they can sell directly to a buyer. And, many homeowners are discovering a simple strategy called “owner financing” or “seller financing” that allows them to sell their home to a buyer and collect regular payments that pay off the house:
- The buyer pays a down payment
- The buyer pays regular monthly payments
- When the agreed-upon price is paid, the title reverts to the buyer
Homeowners love it because it’s a great way to sell and a great way to find even more buyers – including those who might not be able to get traditional bank financing. Homebuyers love it because it means more choices for them and they don’t have to necessarily impact their credit score to get a house.
If you own your house outright, you can do a seller financing agreement. But what happens if you have a mortgage? Maybe you’re wondering, “Can I do owner financing if I have a mortgage on the property in Greater Cincinnati?”
The short answer is: it’s complicated.
Seller financing with a mortgage
In some states, you can create something called a “wraparound mortgage” in which you extend a mortgage to a buyer (usually at a higher rate of interest) while still paying your own mortgage to the bank. However, this is not legal in all states and all situations, and there are additional clauses that you should be aware of.
Can I Do Owner Financing if I Have a Mortgage on the Property? – You have choices
If you’re unable to sell with seller financing because of a mortgage, you have other options…
An alternative that might work for you is called rent-to-own, which has some similarities (such as ongoing payment and you own the house) and some differences (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).
If you are thinking about accepting owner financing but you still have a mortgage on your property, here’s another option for you: Get in touch with us and talk to us about your property. As experts in buying and selling real estate, we are aware of a number of options that you might not know about. We can walk you through those options and help you out ourselves or we can connect you with someone who can help you.
Note For Sellers and Buyers of Houses With an Existing Mortgage:
- Buyers of homes sold with a mortgage should earn equitable title ownership rights.
- Sellers should be prepared to pay their mortgage payment if the buyer misses their own payment.
- Sellers should still be responsible for their payments.
Home sellers should do a careful structure in terms of their home sales. A detailed written contract with regards to the payment must be made to the seller so as to avoid having serious lender attention if payment is missed by the buyer.
Get in touch with us today by clicking here to fill out the form or by calling us at (859) 412-1940.
If your question is how to sell a house by owner financing, then reach out to us! We can provide owner financing all over the Greater Cincinnati area and places like Fort Thomas, Florence, Erlanger, Milford, Mason, Loveland, Oakley, Fort Wright, and more. We would gladly help you so you can take control of your situation, end the hassles, and get back to living the life you want to live. You deserve to know all of the options available to you right now!