Living in rental that began Feb. 2010 with the understanding that Owner is motivated to sell to me. FMV is 175K-180K, owner mentioned selling around 120K so knew it was a no brainer!
Well, that was Feb. It's now end of April 2010 and finally got his mortgage numbers from him...more like 140k is what he needs to pay off mortgage and equity line. Small set back, but plenty of equity to make it a good buy.
Currently trying to get answers to my questions...
(cut-n-paste from previous location on site)
*Note* I can't get conventional loan due to credit issues.
Here's my question(s)...Owner has original Mortgage bal. of $119K and an "Open-End Mortgage" for 18K. What is an "Open-end mortgage"? Will this cause problems with him transferring property to me if he should hold the note or do a lease w/option?
Also, pulling up these docs. thru the Co. records...I noticed a section that reads "If all or any part of the Property or any Interest in the Property is sold or transferred without Lender's prior written consent, Lender may require Immediate payment in full of all sums secured by this Securty Instrument...etc. Does this delete the possibility of owner financing?
Any suggestions for getting around the above? If I can't own the property myself, would the above prevent me from assigning this great buy? What about a Mortgage assumption? Are the lenders these days more willing to let a buyer assume the mortgage if it's obvious the current Mortgagee is headed toward foreclosure? Just trying to decide what "CAN" be done (I'd prefer to own this one)then go from there.
Thanks in advance for speedy response as I've tried looking for these answers on the site and in the books with little luck and I'm to meet with the owner tomorrow. Pls. advise.
Thanks so much,
Cut! So, suppose to meet with owner tomorrow..under pressure to have "it all together" by then! Meaning, what I can and can't do! At this point, thinking I will sign a Lease with Option to Purchase to lock up (should have done that previously, but felt it was pushing owner) then go from there!
Whew...lengthy! Til tomorrow or so...
Have a Blessed Day,
We all are everyday Angels, so why not expect miracles? They're there...have you noticed or made yours today?