An Opportunity for Seller Financing

Posted on Jul 05 in Blog, Business Opportunities, Buyers/Sellers, Seller Financeby MaryAnnPrint

A GREAT TOOL IN TOUGH TIMES

Seller financing may help you when the bank can’t

People want to be buyers of homes. They want to provide for their families and get in out of the weather and elements. All of us want some private space we can call our own. A place to raise the children. Or maybe even just take their family out of the in-law’s home.

There could be many scenarios.

You have sold your home and now have no place to call your own.

You are working your job and saving money, you have enough for a down-payment and want to move into a home with your family. You go to the bank to qualify for a loan. The bank says you are not qualified because they need a specific period of time being employed in this job.

Whatever your story, a seller has their story too.

Maybe:

The seller can’t wait to sell the home with a traditional loan because the home is “non conforming”

In other words the home, while containing a kitchen , bathroom, living room and bedrooms has other unique qualities such as flooring that needs to be completed and they have run out of money or the zoning isn’t such as the surrounding area.

OR;

The home could be on too large a parcel of land for banks to loan on it. Other times it is simply the market being slow that motivates the seller to a position to finance the home for you. At times it may be an investor who wants to get some monthly payments coming in so that he can further his developments.

Sellers Financing is sometimes known as “seller carry back” It is different than a “rent to own” or a “lease with option”.  When a seller finances a property the property becomes the buyer’s in title , with a lien from the seller as the financier.

Let’s take the scenario of a hard working mom.

Lucy, who has been recently divorced but her life is on the upswing because she has a new career. She has been living in the basement of her mom’s home with her daughter. She is making money and has some saved up, but has still not reached the 2 year qualifying time that the traditional banks require. She wants to provide for her daughter. It is a buyer’s market and there is a home down the street that is priced great. She loves it, it is near her mother’s so her daughter can be taken care of after school, but still they can have a place to call their own.

The seller, Bill and Sandy have paid off their mortgage, are retired. They are ready to live a dream and move to Fiji but need to sell this home and be able to afford another. They need monthly income. A properly negotiated seller finance could enable them to have the income they require.

2 Comments

• elliptical says:

  November 15, 2010 at 6:47 pm

  I will visit this website again often. Thanks for the good work.
• MaryAnn says:

  November 15, 2010 at 8:19 pm

  Thanks for visiting the site and reading posts. I will be providing more detailed information about seller financing and other real estate topics as time goes forward.

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