One huge benefit, no one thought of if the seller is not savy, they may not record a mortgage on the deed to you. This is nice as the note you sign is not tied to the property, instant equity! If the property appreciates in the future you could refinace without paying the sellers loan off, take the money and put it towards a down payment on another property.
This is not pie in the sky, it has been done believe me.
Another benefit that I did not see mentioned is the possibility if a substantial discount for early payoff.
If I owe the seller $100,000 and am making monthly payments, a few years go by, sellers circumstances may change, seller may agree to discount the debt for cash, say $75,000. I refinance and save $25,000.
Under what circumstances would the seller not be able to offer seller finacing? Say that wanted to offer !00% financing and they have not paid off all their house, how would that work?
There is really no circumstance where the seller could not offer financing. In the case of an under lying mortgage one could do a wrap of the underlying mortgage.
You might sell your property quicker to a buyer that can get 100% financing.
Nate-WI
Please elaborate
If the buyer can get 100% why would the seller need need to "carry"
One huge benefit, no one thought of if the seller is not savy, they may not record a mortgage on the deed to you. This is nice as the note you sign is not tied to the property, instant equity! If the property appreciates in the future you could refinace without paying the sellers loan off, take the money and put it towards a down payment on another property.
This is not pie in the sky, it has been done believe me.
Another benefit that I did not see mentioned is the possibility if a substantial discount for early payoff.
If I owe the seller $100,000 and am making monthly payments, a few years go by, sellers circumstances may change, seller may agree to discount the debt for cash, say $75,000. I refinance and save $25,000.
Have fun
Under what circumstances would the seller not be able to offer seller finacing? Say that wanted to offer !00% financing and they have not paid off all their house, how would that work?
There is really no circumstance where the seller could not offer financing. In the case of an under lying mortgage one could do a wrap of the underlying mortgage.
"...wrap of the underlying mortgage" What does this mean?
bump