Do you have a house you want to sell? If you have a mortgage on your home, you might be wondering, “Can I do owner financing in MI if I have a mortgage on the property?” We’ve received this question a few times, so we decided to answer it here… please keep reading and we’ll answer that question and give you some other strategies for moving forward…
You Have Options
Homeowners who are thinking about selling have several options. They can list their home through an agent, list it themselves, or they can sell directly to a buyer. 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 their house:
- Buyer may pay a down payment
- The buyer pays regular monthly payments
- When the agreed-upon price is paid (buyer gets financing), the title is put into the buyer’s name
Homeowners like this option 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 immediately get traditional bank financing. Home buyers also like this option because it means more choices for them, they don’t have to necessarily impact their credit score to get a house and it can also improve their credit as they make payments.
If you own your house outright you can do a seller financing agreement.
What happens if you have a mortgage? “Can I do owner financing in MI if I have a mortgage on the property?”
The short answer; it’s complicated.
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 (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, contact us so we can talk about the options with your property. As experts in buying and selling real estate, we are aware of a several options that you might not be aware of for selling your home. We can walk you through those options and help you out ourselves or we can connect you with someone who can help you.