owner financing contract question?
I am buying a house. The owner is financing it for me. They want a clause in there saying title remains in their name till paid off. Is this a bad thing? Shouldnt it be in my name? I am going through a title company on the paperwork on everything as well.
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This sounds like a rent to own situation if the title is to remain in the sellers name. If it is ... RUN AWAY! 99% of these deals ends badly. When a house is purchased ownership transfers!
If you aren't in a position to get a conventional loan today it is in your best interest to try to do a lease option instead. A lease option is another type of owner financing where the buyer negotiates a sales price and offers a larger than normal security deposit and then leases the property for up to 2 years or until when ever the buyer can get financing. The large security deposit then gets applied to your down payment and you buy a house at the predetermined sales price made a year or two before. If you fail to get financing, you lose your security deposit and the seller is free to sell to others.