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 in OH if i have a mortgage on the property?” We get this question a lot so we decided to answer that question here… Keep reading in this blog post and we’ll answer that question and give you some strategies to move forward…
You have options for Seller Financing
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. Home buyers 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 in OH if I have a mortgage on the property?”
The short answer is: it’s complicated.
Seller financing with a mortgage in Springfield
A “wraparound mortgage” is a type of owner financing that can be utilized in certain states. It involves extending a mortgage to a buyer, often at a higher interest rate, while continuing to pay your own mortgage to the bank. This method can allow you to generate cash flow from the difference in interest rates and potentially sell your house faster. However, it’s important to note that wraparound mortgages are not legal in all states and situations, so it’s essential to research and understand the laws and regulations in your area. Additionally, there may be specific clauses and requirements that must be included in the agreement to ensure the transaction is legal and secure for both parties involved. Consulting with a real estate attorney or an experienced real estate investment company like Overlook Real Estate can help you navigate the process and determine if a wraparound mortgage is a viable option for your situation.
Can I Do Owner Financing if I Have a Mortgage on the Property? – You have choices
If you’re unable to sell your property with owner financing because of a mortgage, don’t worry because you have other options available. One of the most popular alternatives is called rent-to-own. This option works similarly to owner financing in that the buyer makes ongoing payments to the seller, who still owns the property. However, there are some differences between the two options. For instance, the rent-to-own agreement might not require 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’re still interested in accepting owner financing for your property but are concerned about your existing mortgage, then there are still solutions available to you. Overlook Real Estate is here to help you explore all of your options. We are experts in buying and selling real estate, and we can walk you through different strategies to sell your property, including ways to handle your mortgage. Our team has years of experience working with homeowners in situations like yours and we know about a number of options that you might not know about. We can offer you different solutions that could work for your unique circumstances, and if we can’t help you ourselves, we can connect you with someone who can. Don’t hesitate to get in touch with us today to discuss your situation and explore your options.