Profile picture for markinwny

Can an owner hold a mortgage if he still has a mortgage on it?

  • August 30 2014 - Clarence Center
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Answers (5)

Profile picture for wetdawgs
If you are asking if an owner can sell with owner financing when there is already a mortgage on the house, the answer is probably no.   Once you sell (transfer the house to another's name), you have to pay your mortgage back in full.   Please read your loan documents carefully and contact your lender.
  • August 30 2014
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Profile picture for craigfial
It's called a wrap around mortgage.  Be careful.  Get legal advise before proceeding.
  • August 30 2014
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Don't understand the question. Agree with comments below.
  • August 30 2014
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What George says is true, but there is a huge caveat. If the lender of the 1st mortgage finds out that he sold the house, and is holding another loan themselves, it could trigger the due on sale clause in most loans and the first lender could demand payment to pay off the loan in full. 
  • August 30 2014
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Your question is a little vague, but I will take a stab at answering it. Let's say someone owns a property and for some reason the seller may not have been able to sell the home. What may people over the years have done is to do a AITD (all inclusive trust deed) or Wrap Around, where the seller sells their home to a buyer who agrees to pay the seller's existing mortgage along with an additional mortgage to cover the seller's equity. In this way a buyer can purchase a home without having to qualify for a institutional loan through a bank, credit union, or mortgage lender. There are some pros and cons for both parties. I hope I answered your question. If not you can contact me directly.
  • August 30 2014
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