How we bought our house without interests (full recording)

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Islamic Finance
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wa alaikum assalaam,

That is right, it is called a due on sales clause. If the seller DOES NOT have a due on sales clause (most of them do), then the seller can sale the house and the bank does not require that they are paid off. The seller can keep making payments to them and you can make payments to the seller. This is not enough though, because if the seller defaults, then the bank takes the house from you. What you need is a contract that states that you have full rights to the ownership of the house and your contract precedes all other contracts and even if the sellers default, that doesn't matter because your contract is between you and the sellers, not you the sellers and the bank.

Since most mortgages have a due on sales clause, this scenario doesn't work. What we did was demand our contract be secure from the bank so the sellers refinanced their mortgage so there was no due on sales clause and we were able to buy the house from the sellers with no third party involved (i.e. the bank). If the sellers default on their loan, the house has nothing to do with it. We have a secured interest in the house and our contract precedes all other contracts.

So why would a seller ever agree to this? Many reasons: you (the buyer) are offering a monthly payment higher than the seller's monthly payment to the bank, the seller has bought another house and can't afford multiple payments, the seller is fearing foreclosure on their house, the seller is fearing bankruptcy, the economy is in a recession and the seller needs extra cash, the supply is higher than the demand in the real estate market and the seller is unable to sell or rent their home, etc.

As for people who own their homes outright, there aren't very many people out there like that. If they even own their homes, the have taken out one or more loans on the equity of the house or on other items and can't afford all of the payments (the stats on how many people stay in a home for more than 5 years is very small). We a surprisingly high response when we first presented our method to for sale by owners and realtors. We had many houses to choose from when we were looking to buy a house interest free. We are buying our house with relatively high monthly payments over 5 years, so it becomes more attractive to all sellers.

In the end, all I can say is, it doesn't hurt to try, right?

Wa Allaahu 'Alam

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[LetsCook2gether]

What I dont understand is.

If I want to buy a house I need to borrow money right?

So who is going to borrow me money without intrest? The kafir banks?

Or do they use their bonds? See videos on A4V here on youtube

and winston shrout about solutions in commerce.

The truth is there is no money. Lawfull money is gold and silver

Can some one tell me how its possible to buy a house?

BarakAllahoefiek

[aminahmuminah]

masha allah barak allahu feeki for shareing your succes and knowledge

[o000Adam000o]

@livinghalal

Salam

Search for Q/A: Mortgages? RESP plans? in youtube

The above link from "let the quran speak" refers to "reputable scholars" who state that the 1st mortgage ( the home you will live in) is permissible. They say that the TAKING of interest is haram, but the GIVING of interest is a contributing factor and sometimes cannot be escaped (e.g. student loans). Is this correct?

[o000Adam000o]

@mir200999999999

Salam

Search for Q/A: Mortgages? RESP plans? in youtube

The above link from "let the quran speak" refers to "reputable scholars" who state that the 1st mortgage ( the home you will live in) is permissible. They say that the TAKING of interest is haram, but the GIVING of interest is a contributing factor and sometimes cannot be escaped (e.g. student loans). Is this correct?

[o000Adam000o]

Salam

Search for Q/A: Mortgages? RESP plans? in youtube

The above link from "let the quran speak" refers to "reputable scholars" who state that the 1st mortgage ( the home you will live in) is permissible. They say that the TAKING of interest is haram, but the GIVING of interest is a contributing factor and sometimes cannot be escaped (e.g. student loans). Is this correct?

@"Livinghalal" Wouldn't it be better to publish a FREE guide to help people rather than make $27 for ebooks?

[o000Adam000o]

Salam

Search for Q/A: Mortgages? RESP plans? in youtube

The above link from "let the quran speak" refers to "reputable scholars" who state that the 1st mortgage ( the home you will live in) is permissible. They say that the TAKING of interest is haram, but the GIVING of interest is a contributing factor and sometimes cannot be escaped (e.g. student loans). Is this correct?

@"Livinghalal" Wouldn't it be better to publish a FREE guide to help people rather than make $27 for ebooks?

[josg11]

im only 30 mins thru but renting from the owner is still technically dealing with riba because that rent money is used by the owner to pay off the mortgage they took out. Unless the owner has paid off the mortgage then renting still involves involved with riba. thats why you see renting costs go down when interest rates are really low like they are now.

[ismailcason]

Assalamu Alaikum; I would like to know whether or not you have a deed that is recorded with the city of the location that you live, and if your municiple taxes are being billed to you, as the owner of the property, with your sell as the lien holder?

[ismailcason]

Assalamu Alaikum, Wa Rahmatullah, This is a very interesting subject, and inshallah, others will take advantage of this information. I would like to know whether or not the house was used as collateral for the refinancing of the house by the original buyer?

[livinghalal]

May Allah (SWT) guide us all the straight path and build for us mansions in Jannah far more beautiful then any home we can even dream of purchasing interest free in this world! Ameen

[end of reply of the authors]