hello everyone! So I have been studying some alternative methods of financing a property, one of them is a "owner finance". So I have learned from our friends south of the border to be careful, if the sellers still have a mortgage with a traditional lender, and they then enter into a "seller finance " to me for example that there is a possibility the bank may have a "due on sale" clause that they (the bank) could demand full payment due immediately or they could foreclose on the property. So my question is then, is this the same in Canada? What are some of the other legal issues to doing an "owner finance" or even say a "master lease"? Thank you in advance I really appreciate your input!
Thanks for the reply! So how would I learn more about this?
For sake of having some fun think about it, what if the seller was to add the name of the buyer onto the mortgage contract? Would the buyer then be able to have thier name on the deed with out any real legal blowback from the bank?
Or, what if the seller hands over the responsibility of mortgage payments and the deed goes into a legal escrow until the mortgage is paid out and the buyer can then claim the deed?
Educate yourself in Canadian vs US legal & banking system.
Join an incubator group like REIN or find a mentor or at least read a few books.
Adding a name to a mortgage is essentially a new pre-qualification. AfS is a strategy where a one day course exists offered occasionally by Barry McGuire & REIN. That may interest you. There may be some cheaper course material you can buy on the REIN website.
You can always change title ( not deed ) in Canada and assume everything on it. Keep in mind a mortgage is a personal loan, secured by real estate. As such seller remains liable for it if something goes awry even if the buyer pays for it.
Join an incubator group like REIN or find a mentor or at least read a few books.
Adding a name to a mortgage is essentially a new pre-qualification. AfS is a strategy where a one day course exists offered occasionally by Barry McGuire & REIN. That may interest you. There may be some cheaper course material you can buy on the REIN website.
You can always change title ( not deed ) in Canada and assume everything on it. Keep in mind a mortgage is a personal loan, secured by real estate. As such seller remains liable for it if something goes awry even if the buyer pays for it.
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