We did owner financing with my aunt and uncle through a lawyer and it was filed through the county we pay the taxes. We are wanting to sell and the first 44,000 from the sale would go to them. Is that legal or do we need to attempt to get a 44,000 loan pay them off then sell?
Whether you can sell your property and pay off the financing provided by your aunt and uncle would be based on the terms of your mortgage and note. However, in most cases, the situation you’ve described would be perfectly fine. You should be able to sell the property, so long as the balance of your note ($44,000) is paid off at closing – that would be required in order for your aunt and uncle to release their mortgage so you can transfer clean title.
For more information on owner financing and how it works, be sure to check out our Ultimate Guide to Seller Financing.
Best of luck,
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