How to Owner Finance Your Home
Author: Bob Milkor
Author: Bob Milkor
You've seen the property advertisements in the classifieds section of the newspaper [*CO]'Owner Financing Available' or'Owner Will Carry'. An owner funded property exchange enables the buyer of the property to make payments straight to the seller.
This permits the buyer to get the estate without having to apply for a mortgage from a bank or monetary institution. The vendor also has the choice of selling the loan to a financier for cash.
naturally, there are a lot of variables that work into a price offer including kind of property, location, age of house, equity, is the buyer making the regular payments, and so on. These are just some of the things a backer likes seeing. Investors buy all sorts of real estate notes and deeds of trust. Every house is different, every loan is different and every deal is different. Use the above list to make the loan more attractive to a backer.
benefits of OWNER FINANCING THE SALE
Sell Your Property For Your Desired Asking Price
A buyer might be completely pleased to pay market value ( and perhaps more ) for a home that requires a smaller down-payment and a bank won't help them finance.
Charge a Higher interest rate Than a Bank Would Give
quicker Sell
You can sell a home with owner financing a lot quicker than with bank financing and there can be tax advantages in spreading the buyer's payments out over time ( talk with an accountant about that ).
Great Monthly cash Flow Investment
A seller who owner financed the deal also has the choice of selling that note to an investor for money either straight after closing or after waiting a number of months or years ( give me a call or email and I'm able to get you more info about selling your note ).
downsides OF OWNER FINANCING THE SALE
money At Sale = little Down Payment
Seller receives only a tiny or even no down payment.
the vendor takes the risk that the buyer won't make payments and will need to be foreclosed on.
Due-On-Sale Clause
The Due-on-Sale Clause is a provision in a mortgage or deed of trust that permits the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home. It is probably the most discussed, feared and misunderstood subject in real estate. A competent real estate lawyer would be about to help you set one up. Very likely, so long as the bank continues to receive their regular payments from you, there would be no reason for them to go to the trouble of demanding payment. Especially in this economy.
If you are going to owner finance your home and you know you want to sell the note this is a great way of doing it as the investor is there for the whole process and you don't have to start over again 6 months later with another appraisal, inspection, credit check, and so on.
property execs - Providing owner financing could mean the difference in having your client sell their place quickly or having it sit on the market for months, years or not selling it at all.
Asking a seller to supply owner financing to buy their home can be a tricky offer. Sellers often reject the idea of owner financing because nobody has explained the benefits or proposed owner financing as a way to sell the home. Most sellers' information is restricted to standard bank mortgages.
massive TIP OF THE DAY :
If you are going to draw up a contract to owner finance the sale of your house have an experienced real estate lawyer look it over. It'd cost you $400 or $500 but it might save you a lot of heart ache in the final analysis if the purchaser stops making payments, they make unapproved alterations to the house, which might still be in your name, or there is some other unexpected event. Learn more at
No Credit Check Homes To apply for loans without credit check, you can go offline or online mode. So, apply today and avail quick funds in spite of of poor credit records at
Owner Financed Homes or see similar articles at ArticlesBase.
.About the Author:
Bob Fundman is a free lance writer in the loan industry
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