Beware! What No One Tells You About Owner Financing a Home
ฝัง
- เผยแพร่เมื่อ 19 มิ.ย. 2023
- Are you considering owner financing to purchase your dream home? As interest rates rise, owner financing has become a popular option for many. But beware - it's not without its potential pitfalls! In this video, we delve deep into how owner financing works, the cautionary aspects to consider, and the importance of knowing exactly what you're getting into.
From the negotiation process to potential legal consequences, we've got you covered. We also share a shocking real-life horror story highlighting the risky side of owner financing. This story serves as a sobering reminder of the importance of vigilance and due diligence.
We explain why hiring a lawyer is crucial in an owner-financing deal and how it could save you heartbreak in the long run. Understanding the fine print and taking precautionary measures can go a long way in securing a safe and beneficial deal.
Remember, owner-financing deals can be great when done right. We're here to guide you through the process and ensure you're protected every step of the way. For more information or if you have any questions, please reach out to us. We're more than happy to assist you.
Stay tuned for more informative videos on our channel and don't forget to check out our other content on life and real estate in Montana.
Subscribe to our Newsletter Here: montana-life-realty-team.ck.p...
Tools for the Montana winter:
Winter Survival Kit: amzn.to/3GC5MUo
Equipment used to produce videos:
Sony A7 IV Mirrorless Camera amzn.to/3GkZN5O
Sony ZV-1 Digital Camera amzn.to/3yDhSYS
Canon EOS M50 amzn.to/3EBEdtz
DJI Mini 3 Pro Drone amzn.to/3VnKYoF
DJI Osmo Action 3 amzn.to/3yDe9ub
DJI Mic - Wireless Microphone System amzn.to/3Cw4xT9
Amazon 60-Inch Lightweight Tripod amzn.to/3RXRD6c
Apple iPhone 12 Pro amzn.to/3EGkWaq
If you would like information about homes and land for sale in Montana, Please contact us at any time! Click Link for more Info: www.livinginmontana.info
Disclosures: All opinions are my own. Sponsors are acknowledged. Some links in the description are affiliate links, if you click on one of the product links, I’ll receive a commission at no additional cost to you. As an Amazon Associate, I earn a small commission from qualifying purchases.
Will Friedner
Phone: 406-249-1735
Email: montanaliferealty@gmail.com
Check out our website at montanaliferealty.com
Get Your Montana Life Swag Here: Montana Life Hoodies and Shirts
Follow Us on:
Facebook: / montanaliferealty
Instagram: / montanaliferealtyteam
Pinterest: / montanalifereal
Twitter: / willmontana
LinkedIn: / willfriedner
Please Check out our Montana Real Estate Podcast : podcasts.apple.com/us/podcast...
#Montana #MontanaRealEstate #MovingtoMontana - บันเทิง
There are some truly awful people in this world. Hire. A. Lawyer. Always. Very interesting, Will.
good advice. the horror story is the exception, not the rule, but is a great example of failing to perform the necessary due diligence. and regarding the 'fine print'. my added advice would be this: request a digital / electronic copy of the agreement, as well as a printed copy. and request that ALL type / font is no less that 12 pt size. NO exceptions! best of luck. i am currently considering making and offer on a property that will involve a request for owner financing.
Thank you for this video. great information
Very good information here. Cheers, Will! ✌️
Thanks for sharing your expertise
Very informative 👏 thank you❤
This is some very very good / honest information .Thank you
Dodd frank doesn't allow balloons fir occupant loan. Sad occupants take such high risk. I buy rentals sub to, never a problem with the bank calling the loan. I buy into land trust, get POAs to manage the bank as the new "manager ".
Seller financing often is bad due to tooo high a price that you'll never be able to Refi out.
That was good to know. Thankyou
Great video, thank you.
Great advice!
Thanks for the info Will! It’s nice to have someone willing to go the extra mile and inform us. You the man! Ronnie
What house is that in the thumbnail? Good advice. Thank you for the heads up!
Your like the "Great Oz" of information! Thanks for all you do!!
Don’t look behind the curtain!
Also Make sure to go to the local town hall or their website to find out if there's any back owed due taxes on it before committing...
And usually what happens is after your 90 days of no payments (So if you don't make your fourth payment then the process begins where the house can be forfeited back over at that point... Usually after 120 days from first Missed payment is when the house can be repossessed by the owner who holds the paper/title deed on it...
Of course though, Just like you said, some may not want the house back and may go out on a limb to work out something still with you at that point
Be aware that when you buy a property financed by the owner, the seller (the owner) has the right to choose his own attorney.
The seller's attorney will work in the best interest of the seller! That might not be good for you !
You must get your own attorney to protect your interest !
I'm in an owner finance situation on my RV park in Florida and need to pull money out, how would you recommend I do this?
Lots of owner financing deals out there for cabin properties with house prices
Well if that's in Montana never mind I'm looking in Indiana Kentucky Tennessee areas for unrestricted land
That is a horror story though
How do you ensure the payments are made!??
This is a very weird question (I'm having to ask it on this video because it is the most recent), but I went to Montana about a year ago and heard a great band play. It was around Glacier NP, but I don't remember which city. It was bluegrass, two girls (one played the guitar and the other played the fiddle) and they had a green, red, black, and white logo. Sadly, I don't remember the name of the band, so if anyone is willing to help me it would be very much appreciated.
Very interesting. I guess on the other hand laws seem to be more and more against landlords these days. Rona along with certain political movements proved to be a disaster for some landlords.
But this sounds like it could be better than flipping homes. The pool of buyers looking for owner financing is likely higher risk so one needs to be appropriately compensated while also protecting one's interests. If things fall apart there's still a risk of home trashing, wet cement poured down the toilet, or something worse yet.
Are there good lawyers in Montana?
This sounds more like rent to own. Owner financing doesn’t work like this. The buyer really has the advantage if there are no liens on the property. It sounds like he is dealing with rent to own. Rent to own and owner/seller finance are two completely different things
I am going though something with the lender he is trying to take the property because I was late it’s bee5 years and now he is saying I have to pay by the 1st of the month or he going to take the property I paid on the 2nd of the month
Owner financing is not the same as rent to own. A seller would still have to follow state laws for eviction and foreclosure, just like the bank. If there is an existing mortgage on the property, it's called "subject to the existing financing." The due on sale clause is there, but I have never heard of a bank exercising this, at least in the last 30 years or so. They could, but they probably won't as long as the payments are being made. Your horror story was not owner financing. If it was, the deed would have been transferred to the buyer's name. You are describing a rent to own deal, which I would never recommend as a buyer. Actual owner financing is no more risky than a bank loan. The only difference is that the seller has a lien on the property instead of the bank. The same laws apply. There are not separate laws for banks. Your language may confuse people because you are saying owner financing, but describing rent to own. Maybe you don't know as much as you think.
"Maybe you don't know as much as you think" 😂 Says the guy who totally missed the point!
@@LivinginMontana1you called rent to own (a very bad idea) owner financing (a very good idea) you’re NOT discussing owner financing at all. So you’re not making any point about owner financing you’re talking about a rent to own agreement where you have the option to purchase the property at the end of the agreement. In owner financing the buyer owns the property NOT the seller, the seller has a lien and can ONLY touch the loan or property with either A the agreement of the new owner (the buyer) or B the owner defaulted on the loan.
@@LivinginMontana1 The other two comments here are correct. Seller financing is no different from a bank loan, except that you can negotiate the specific terms (and there are some tax pitfalls to watch out for on both sides). In the story you told, you were describing a rent to own scheme, which in itself is not a bad idea is there’s a contract and a third party escrow and acceptable remedies for breach by either side. But the story you told is of s fraudulent scheme where an unsuspecting couple was outright cheated. That said, if your advice were simply that one should get competent legal counsel for any custom transaction-including recording your deed or option to buy at the county recorders office-then yes I’d back you up on that point. But let’s not confuse all varieties of custom deals as being coequal.
If you stop paying your payments to the bank are they going to give you your down payments back and all the payments you have made over the years ? Of coarse not ! This isn’t a trick by sellers to take the place back ! Look if you don’t pay you cant stay so I don’t know how on earth you think it’s being crafty to throw non payers out
How often are the due on sale clause, actually called!? Don’t the banks just want the monthly payment payed on the loan!??
From what I understand the due on sale clause is almost never called… not even 1% of the time…
NEVER NEVER EVER BUY UNLESS THEY OWN THE PLACE AND NEVER BE OK WITH GIVE"N IT BACK UN LESS YOU MISS 6 FULL PAYMENTS DON"T LET THEM DO THIS STUFF TO YOU !!!!!!!!!!!
did that really happen? i'm pretty sure you are making stuff up now.
Yes, unfortunately that really happened!
@emotinallyexhausted. "There are some truly awful people in this world"---yeah like lawyers................