i m looking to owner finance a property. The buyer is an old

by nkimani7 » Fri Jan 28, 2011 09:19 pm

rff

Total Comments: 4

Posted: Fri Jan 28, 2011 10:12 pm Post Subject:

i dont see the question...is it me? here's what is showing: i m looking to owner finance a property. The buyer is an old

Posted: Sat Jan 29, 2011 12:02 am Post Subject: Owner financing

Here is the question. Sorry. I am looking to owner finance a home to an older lady who would like to know if there is some type of insurance she can purchase that can cover the mortgage if she passes away so the house can stay in her family

Posted: Sat Jan 29, 2011 12:17 am Post Subject:

she can buy a life insurance policy that will allow the family to pay off the loan w/ you leaving the deed free and clear to be transferred to her heirs. simply have an agreement set up on how the transaction should take place.

this is similar to a buy/sell agreement businesses use. should a partner or major stock holder die, his family inherits his stock and ownership via his estate. So that the company isn't now in business and under control of the family, the company will elect to structure a buy/sell agreement funded by life insurance w/ company as beneficiary ...so in the event of the partner's death, proceeds will provide the company the funds to buy out the stock from the family. the family agrees to sell the stock for a determined amount as described in the buy/sell. the agreement makes for an easy transaction.

you need to sit down w/ an agent to structure the life insurance and have an attorney draw up paperwork.

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