Are you selling a house without a Realtor? Seller financing and selling a home without an agent has its cost and benefits. Q: I appreciated your article on the advantages and disadvantages of holding title to a home in a limited …
Even when you find a home and the seller is offering seller financing, you probably need a good credit score. People with low credit scores can scare sellers and make them refuse to give you seller financing. If you are a seller offering seller financing, make sure your purchase and sale agreement or your sales contract provides you an opportunity to review the prospective buyer’s credit history, credit score and references before committing to giving the buyer seller financing.
If you’re looking to buy a vacant lot to build on, it might be harder than you think to get a loan. Owner financing could be a good option if you’re trying to buy a vacant lot. Most mortgage lenders won’t give you a loan for a vacant lot, so it’s worth asking the owner if they’re willing to do owner financing.
Since the credit crisis, mortgage lenders have raised their requirements for issuing mortgage loans. With this in mind you as a seller may decide to extend financing to a home buyer. But what are the risks of seller financing? How can you ensure that the buyer who you provide seller financing to can make the mortgage payments? Learn more about assessing risk with seller financing in this real estate law story.
An installment sale means selling the property to a buyer in stages. An installment sale offers seller financing, gives the buyer interest in the house but leaves the title with the seller until the buyer has paid in full.
I’ve got an investment property that the renter is interested in buying. I am considering offering them owner financing, but am not sure where to get the documents written up. Also, the house has a mortgage in my name. If I do sell them the house, what will my lender do?
A home owner asks about offering seller financing on a home he’s selling. He wants to know what’s involved in seller financing and who to involve in the transaction. First he needs to assess whether a potential home buyer will make the home mortgage payments and what to do if the buyer later stops making payments. When a seller sells a home with seller financing it’s as if the seller becomes a mortgage lender or bank. That means the seller may have to be willing to foreclose in an owner financing situation.
What is the consequence of not meeting a deadline to repay seller financing for a home? In a well-executed seller financing scenario, the buyer and seller sign a promissory note that details the terms of the seller financing. Can the owner who financed the home take it back if the deadline is not met?
An owner financed mortgage is not working for this home buyer. Ilyce suggests that this ThinkGlink reader work with a real estate attorney to understand her current mortgage and then refinance from a conventional lender.
Seller financing mortgages are becoming increasingly popular. Home sellers who are desperate and anxious about selling might want to try seller financing to get their home off the market. Traditionally, seller financing is easier and cheaper than going through a conventional mortgage lender.