Consumption and Real Estate
Is it legal for a home owner to sell the home(Owner Financed) with out an inspection and appraisal.?
Question : Is it legal for a home owner to sell the home(Owner Financed) with out an inspection and appraisal.?
Situation: Home owner is selling a home and doing owner finance on it. The property is worth a lot less than the selling price. Since they are doing owner finance, there is no appraisal or inspection. Is this legal? On a traditional mortgage, the bank uses the appraisal to determine if they can carry the note. In this situation, the owner is the bank. It seems like they are trying to scam the buyer. Can an atty chime in?
home inspection pricing
Best answer:
Answer by Release the Kraken!
You’ve answered your own question. I won’t comment on the wisdom or ethical nature (or lack thereof) of what you’re about to do, but in such a private party transaction, an appraisal won’t be required except for special circumstances.
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#3 written by goz1111 1 year ago
You do not have to make an offer on the home if you do not like the terms the owner is asking;
The bank is being up front, the asking price is X, well aware it will appraised for less, so they have to carry the note: Side Note: a savvy investor paying cash would never make the deal with the bank; but I will assume the terms of the loan are good for certain buyers even if its more then current appraised value
Nothing is stopping you by making an offer contingent on inspection, lender will probably expect with time line to inspect, but will not budge at this point lowering the asking price, either wait another six months to see if the home sits or make a cash low ball offer for once again Cash IS King
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#4 written by Sharon T 1 year ago
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Yes it is legal. It is the buyer’s responsibility to pay for an appraisal and home inspection plus hire a lawyer to protect their rights Buyer Beware