100% seller financing

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Submitted by Sick Of The Heat on August 14, 2007 - 8:39am

"This is a for sale by owner property (FSBO) in Carmel Valley. The owner is offering 100% seller financing on a $715K to $750K property. This means that if you can cover 3 payments and the costs of creating the legal documentation for the transaction, this property is yours with all the tax benefits and pride of home ownership."

The above paragraph is a description on a FSBO house in CV. Is the owner wanting to be the bank? The cost per sq ft. is high -- $452. Can someone help me understand this?
Thanks!

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The seller is probably not
Submitted by Blogstar on August 14, 2007 - 10:26am.

The seller is probably not going to pay off the bank if there is a mortgage. This can be done legally in some cases with a land contract.The seller is responsible for the mortgage payments. There is something in mortgages called a "due on sale" clause that prevents this in most cases.If the seller owns it free and clear they can do what they please.If the seller in a land contract steals the money from the buyer instead of paying the mortgage, the bank can foreclose and the buyer is hosed.

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