I have owner financed a house and on the note it said it is paying for 15 years. At the time, I was not having enough knowledge about the owner finance but at the moment, I am still paying mortgage on the house, the mortgage company is paying for property tax and insurance through escrow account on my account and the buyer reimburses back to me. We did not put a balloon period on the term. I did a claim on the roof recently and all my insurance premium go up so I do not want to have my name on it anymore. Is it possible for me to ask them to pay off the full amount in half a year? or what can I do to get them get a traditional loan to pay off the amount? thank you
Thanks for the question. Unfortunately, there isn’t a way for you to force the purchasers to pay off their mortgage early. IN fact, you are probably violating the terms of your own financing by having sold the house without having paid off your mortgage. Your only option at this point would probably be to see if you can entice your buyers to pay off their financing early in exchange for a discount, then use the loan payoff proceeds to pay off your own mortgage. That way you would be out of the property entirely and not responsible for taxes, insurance, or mortgage payments.
Hope this helps. Best of luck resolving this sticky situation.