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Mic
Mic , Finance & Insurance
Category: Finance
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Experience:  25 years experience in banking, real estate, & insurance transactions
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How do I sell my house if I still owe on the loan

Resolved Question:

My renter wants to buy my house, and I still owe on the loan because I was using the payments to pay the mortgage on my new house.
Submitted: 9 years ago.
Category: Finance
Expert:  Mic replied 9 years ago.
HelloCustomer

There are some different ways that you can sell the rental home to your renter.

The first is called a Wrap-Around Mortgage, it is where you have a mortgage on the property, yet you are drawing up a contract to sell the property to someone else. They will make payments to you and you will make the payments to the bank. You will need to draw up a land contract or a lease purchase contract for the amount you and the renter have agreed is the price for which the house will be sold. In this contract, since you are the one acting as the bank, you would have set out the terms of the aggreements such as what the percentage rate is that you will be charging and what the monthly payment are and when they are due. For this you have a deed of trust drawn up and also a Warranty Deed placing the property in their name. You also need to give your buyer the option to have the home refinanced by another lender. (It is best to have an attorney or someone in the real estate field to help you with this)

The other option is to tell them that they have to get their own financing. You will draw up a contract for sale and they will take that contract to whomever they are hoping to obtain financing through. When they get the financing, the lender they use pay off your loan in full and any money remaining goes to you.

I hope this helps!
Michelle
Mic and 2 other Finance Specialists are ready to help you
Customer: replied 9 years ago.
Is there anyone that you can suggest in the Mississippi area?
Expert:  Mic replied 9 years ago.
HiCustomer

Suggest for which...to help draw up the paperwork or a lender so that your renter can get financing?

Michelle
Customer: replied 9 years ago.
Yes, to help draw up the paperwork.
Expert:  Mic replied 9 years ago.
Customer

You can download forms for this purpose if you want to try to do it yourself and possibly find similaar forms at an office store. Otherwise I would suggest that you speak with an attorney in your area.

Mississippi Land Contract (Contract for Deed)

Michelle