Buy home make payments?
Need advice from homeowners out there: Say I found a home to buy the owners tell me I can put down 10k and make payments on the rest, no interest. What would you advise me to do as far as protecting myself in case they try to change their mind or up the price later? Is there something I should get drawn up by an attorney as a just in case. To prevent any "mess" in the future?
- loanmasteroneLv 75 years agoFavorite Answer
You need to make a contract that include the purchase price, the monthly mortgage payment, if there are any penalties for no making the monthly payment on time,the down payment and other things that might be needed in this contract that would protect the seller and buyer. You would also include the terms (Number of years you would be required to pay t he mortgage loan off).
Once this contract has been signed by all involved in the transaction, you would need to take this contract to a local title company and escrow company to make sure the title deed is transferred to your name and a mortgage note recorded in the sellers name. At this stage this is what a real estate agent would do to make sure the sale transaction is properly completed.
There will be a fee charged by these two companies for the services they provide. These fees may be divided equally by the seller and buy or any way they agree. Normally.
Based on the contract both the buyer and seller has signed, your escrow agent would prepare and have each person sign the Escrow Instruction Instructions.
The title company would make sure the person selling the property to you has that ability and is on the current deed to the property.
These two companies would make sure the sale transaction close according to the local, state and federal real estate laws.
If there are amendments needed in your contract to make the sale transaction legal, the escrow agent would request the needed information from the person required to supply the information and prepare an escrow amendment to be signed by all that need to sign the amendment.
At the close of the transaction and when the escrow and title is closed, your name would be recorded on the title deed at the county recorder's office. You would be issued a deed in your name mailed to you from the county recorder;s office.If you fail to get one in about 14-21 business days, you would need to call the title company you used to close your transaction to send you one by fax, e-meal or any other means.
It is not necessary that you employ the services of an attorney as any you hire would be required to engage the services of the escrow and title company. Now, in addition to the fees you would be charge by the attorney, you would be required to pay for the services of the escrow and title company.
Though the escrow and title company would not be able to provide you legal information, these two companies would make sure your transaction would close according to the local, state and federal retail laws.
I hope this has been of some benefit to you, good luck.
- troLv 75 years ago
you need a written contract that you both sign and each have a copy, outlining all the details
ie. after the down payment you assume ownership of the property, and alll that attends that status, pay the remainder at X$/mo until the full amount is paid(if interest was considered this would also be stated and an amortization schedule included with the contract)
don't buy it without a written contract unless you don't mind losing your down payment and possibly be evicted at some date in the future
- A HunchLv 75 years ago
Hint: If someone is giving you a 0% interest loan for a house, my advice = run far, run fast,...
You are just asking to be scammed out of the $10000.
You can pay to have an attorney create a valid purchase agreement, but you are just wasting your money = the seller won't sign it. Of course, at that point they won't get your $10000 BUT you have wasted the attorney fees.
- Anonymous5 years ago
Obviously yes - you don't buy a home on a handshake. You're getting a real estate attorney to ensure title is transferred and that this financial instrument is for real - it's a stupid offer so accept it if you can, because a 0% mortgage is a money losing situation for the lender by definition.
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- 5 years ago
Though it may just be an option, it would still be a good idea to hire an attorney to check on paperwork and make sure there are no outstanding claims against the property. Have everything on record or in writing and make everything legal.
- realtor.sailorLv 75 years ago
What you are talking about is seller financing. Nothing wrong with that provided you have a valid purchase and sale agreement and at closing the seller conveys title to you. Yes you need an attorney.
- TowandaLv 75 years ago
I would go to an attorney to be sure all was legal. Also don't forge to get mortgage insurance or whatever they call it...but they check to be sure the title is clear.
- WillieLv 75 years ago
To put it in writing is the best way to protect yourself. A contract, if possible.
- glennLv 75 years ago
I would bet that you will never really own this house. I bet it is a scam. Bad title or rent to own or some other problem.
- Cathi KLv 75 years ago
By law it must be in writing. You record the deed.