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Can I Do Owner Financing in Michigan If I Have a Mortgage on the Property?

If you have a house and you are thinking about selling it, then you might be thinking about seller financing too.

You might be wondering if you have a mortgage on your house that can you do owner financing if I have a mortgage on my property. So, in order to know keep reading.

What are Your Options for Selling Your House

Homemakers have several options if they are thinking about selling their house. They can sell directly to the buyer and also, they can list their home through an agent.

Homemakers have discovered a new simple strategy known as owner financing or seller financing. This simple new strategy allows them to sell their home directly to the buyer and collect regular payments that pay off the house.

  1. Down payment is paid by the buyer.
  2. Regular monthly payment is also paid by the buyer.
  3. The title is reverting to the buyer when the agreed-upon price is paid.

It is a great way to sell and find more buyers, including those who might not be able to get traditional bank financing. That is why homemakers love it.

Homebuyers also love it because it provides them more choices. In that way, homemakers do not have to impact their credit score to get a house necessarily.

You can do a seller financing agreement if you own your house outright but what happens if you have a mortgage.

Seller Financing with a Mortgage

You can create something like a wraparound mortgage in some states in which you can extend a mortgage to a buyer while you can still pay your mortgage to the bank.

However, in all states and all situations, this is not legal. There are some additional clauses given below for awareness.

If I Have a Mortgage on the Property, Can I do my own Financing?

Due to mortgage if you are unable to sell with seller financing then you got other choices too.

Rent to own is an alternative that would work for you, which has some similarities like ongoing payment and you own the house. It also got some differences such as the buyer needs to qualify for a mortgage from a bank at the end of the pre-established rental term and there might not be a down payment.

You will still have a mortgage on your property if you are thinking about accepting owner financing, here is an option for you.

Get in contact with us and talk to us about your property. As we are experts in selling and buying real estate and we are aware of a number of options that you might not know about. We can help you by walking you through those options that you might not know about.

We can also connect you with someone who would deeply look into your problem and help you out.

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