Hi All,

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I am looking for some advice on a few questions. I am looking into buying a neighbor's house, through seller financing. Plan is to make payments for 5 years, with a balloon payment at the end. This will help the seller avoid Capital Gains Tax, and allow me to get into a home. I've already looked into appraisals, etc. and the money side of the deal we are talking about really does make sense all the way around for both of us. The idea is for me to update the house a lot, and build equity in it.

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I have a few questions, and the home is owned outright by the seller.

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1) Who provides Homeowners Insurance?

2) At the end of the balloon, payment 60- what are my options? Can I just sell the house if I wish, pay the balloon payment, and keep the extra?

3) What if I want to sell the house before the balloon payment comes due, can I do that?

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Any help is much appreciated!

-Chris.