Subject To Real Estate: An Investor's Guide | FortuneBuilders

Abstract

There's often no ‘official’ agreement between the buyer and seller. The buyer has no legal obligation to make the mortgage payments. If the buyer stops making payments, the house will fall into foreclosure, and the buyer will lose it. The buyer is just paying forward an extra sum so the seller can pay the remaining balance. The seller doesn’t actually give the buyer. It appears that the seller took on more risks. It seems that the buyer takes on more risk. If the seller takes on the seller and the seller is taking on morerisk. The sellers are taking on less risk. For example, the buyer is also taking on the sellers. The transaction is also known as ‘seller financing’ or ‘owner financing” or “Owner financing.” The transaction was similar to a second mortgage. A seller carryback may be a necessary option. The sale can be a good option if a lender won't offer the buyer the total amount of financing needed to buy the seller. It’s a good thing for the buyer to pay the buyer in a short period.