Owner Financing? Builders? Contractors? Considering addition's. (foreclosure, lease, mortgage)

[CoffeeDink1980]

Hello,

Is anyone out there doing an owner-financed home purchase? I'm curious on your view point of the process. We are considering purchasing the house we are renting from our landlord through an owner financed option as the house is paid off. We would of course have an attorney draw up the paperwork.


Also, we will want to remodel part of the house. Does anyone have any recommendations for builders in MB? We would want to add on a second story, re do some of the plumbing and electric. None of these things are emergencies just plans we have for the future but we would like to get an estimate from someone that could come in and say "Ok do XX first then XX so that you don't then tear up the work you did before etc".

Any thoughts are appreciated!

Thanks!

CD

[neecewh]

I am not doing an owner-financed purchase, but have looked into the option. I am also not a realtor or a lawyer, so take this for what is worth, just a layman's knowledge on the subject. Are you considering a lease-option or are you actually buying? If you know that this is the house you want, and are planning on doing renovations I would certainly recommend the latter.

If you google "contract for deed" and "land contract" you will get a plethora of information to help guide you, but you will have to have a lawyer for sure. Obviously you want to get a lawyer who is VERY familiar with these types of arrangement because they can be a little sticky. It is a huge plus that your landlord does not have a mortgage on the property but you would still want to do a title search to make sure of that, as well as making sure that no other loans he or she may have are secured by the property. It would also be beneficial to you (and I am sure your lawyer would suggest this) that you make sure you are not penalized for paying off the contract early. For instance, you have a five year contract but three years from now you are able to get a conventional mortgage at a great interest rate. You would want to be able to do that without being penalized. Also, keep in mind that there is no foreclosure process with this type of arrangement. If you default, the deed holder (your current landlord) would gain immediate possession of the property, your down-payment, as well as any increase in equity from your renovations. Good luck to you!