I know Frank and Dave are big on aquiring parks that the owner will do owner financing. We are in the negotiation stages with a park owner and we are looking into bank financing. The seller has stated to us if we can not get bank financing he will owner finance it with $60k down. My only concern is that he has a mortgage on the property with a. Bank. We would of course pay the note every month to the bank so we now the note is being paid on time but I’m not sure if this is a smart way to structure the deal. Any and all advice would be greatly appreciated.
Thank You Jordan
Is he attempting to carry a second? Or is he attempting to do a wrap?
Regardless of what you do please run this through a Title Company. Many mortgagees will not allow sale of the property unless the balance is made whole in advance.
Read the existing note and mortgage/deed of trust.
Make sure you can acquire the park w/o the bank’s permission.
Do NOT pay the seller directly. The closing agent can assist you there.
Do NOT assume the existing obligation.
If you pay the bank directly, they MAY elect to call the note.
Use a third party to pay all secured lenders.