How do we owner finance our home that we still have a mortgage on?

What documents are required? Do we close on it at a Title Company? They are not putting any money down.

We have figured out the interest rate to charge and monthly payments over a 30 year term.

You can not owner finance a home you own a mortgage on. The current loan you have has to be paid off. A true owner finance would have you signing the deed over to them, and you beome the lien holder, this is not possible or legal to do without you paying your mortgage off first.

You can sell it on a contract for deed or a lease to own, in which case there is no closing and no transfer of deed, merely a contract that says you will give them the deed once they have paid a certain amount of money.

So you are way ahead of yourself, since what you want is not possible.

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Originally Posted by Fr_Chuck

You can not owner finance a home you own a mortage on. The current loan you have has to be paid off. A true owner finance would have you signing the deed over to them, and you beome the lien holder, this is not possible or legal to do without you paying your mortage off first.

You can sell it on a contract for deed or a lease to own, in which case there is no closing and no transfer of deed, merely a contract that says you will give them the deed once they have paid a certain amount of money.

So you are way ahead of yourself, since what you want is not possible.

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As a seasoned loan officer, I agree 95%. I'll piggyback a bit on Chuck's answer. You can sell the home on "Land Contract". There are two types of land contracts, one is "recorded" and the other "not recorded". Recording simply implies that the contract was presented to County Registry of Deeds and the Land Contractees were indeed added to the title. Keep in mind, anyone can be added to the title at anytime, regardless of liens. However, until that lien is paid in full, whoever is on the mortgage note is liable for the payments. Do the following: Sell under land contract, have the contract recorded, ensure the buyers pay in check, not cash, on time every month, have the buyers apply with a traditional lender after one year of being on title to refinance their home. At that point in time, they will have 12 months cancled checks to show a paper trail of timely payments, 12 months seasoning on title and, assuming the refi goes as planned, you'll be off title and on with your life.:)