Comments on: Does this seem fair for owner financing (on a house)? Or is the guy trying to make a few bucks? http://taxlieninvestingnews.com/questions-and-answers/does-this-seem-fair-for-owner-financing-on-a-house-or-is-the-guy-trying-to-make-a-few-bucks/ Current news on Tax Lien Investing Sun, 20 May 2012 15:31:51 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Still reading http://taxlieninvestingnews.com/questions-and-answers/does-this-seem-fair-for-owner-financing-on-a-house-or-is-the-guy-trying-to-make-a-few-bucks/comment-page-1/#comment-110 Still reading Tue, 09 Jun 2009 23:15:48 +0000 http://taxlieninvestingnews.com/questions-and-answers/does-this-seem-fair-for-owner-financing-on-a-house-or-is-the-guy-trying-to-make-a-few-bucks/#comment-110 If you have plenty of dollars for a downpayment, and you can't get credit, it sounds like you've had credit problems in the past. This guy is looking for that to happen here. There are two ways to buy with owner financing. One is as described above, and this is bad for both of you, but especially you. You have no guarantee that he can ever deliver a clean deed at the end of this transaction. Far better for him to sell you the house, deed it to you, and then take back a mortgage. If you fail to pay, he can foreclose and evict you. You would still lose most of what you've paid, but you have some assurance that he can indeed deliver a cleanr title. When he tells you he's done this all his life, he may mean he's sold and resold the same house over and over. If you have plenty of dollars for a downpayment, and you can't get credit, it sounds like you've had credit problems in the past. This guy is looking for that to happen here.

There are two ways to buy with owner financing. One is as described above, and this is bad for both of you, but especially you. You have no guarantee that he can ever deliver a clean deed at the end of this transaction. Far better for him to sell you the house, deed it to you, and then take back a mortgage. If you fail to pay, he can foreclose and evict you. You would still lose most of what you've paid, but you have some assurance that he can indeed deliver a cleanr title. When he tells you he's done this all his life, he may mean he's sold and resold the same house over and over.

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