subject: The Quickest Method to Sell A House - Owner Financing [print this page] As a seller you probably expected to discover a good consumer paying with cash. Because of the subprime meltdown, it's now much tougher to get a loan licensed than it was just a year or two back. Banks have got much tougher with their needs. Sometimes it works out that way and often it does not. However , certain homeowners might be missing a favorable opportunity. If you're a seller who has a big quantity of equity built up in the home, you would be able to milk this advantageous opportunity by owner financing the sale of your home.
There are 2 major benefits to owner financing the home you're selling and of course there is a certain amount of risk involved, but the advantages might out weigh the risks in your situation. A buyer might be willing to pay a higher price for your house at a higher rate of interest if you are willing to help him by owner financing the home. These folks may for some reason not be credit deserving to get a traditional loan. Herein lies the danger ; there's the possibility they may default on the loan.
Seller with a giant equity can get a higher IR by providing a mortgage to the purchaser than the interest the owner would receive if the money were placed in a bank account.
When offering owner financing to a buyer, the seller will give the purchaser either a first mortgage or a second mortgage. Obtaining the document to form the mortgage for the buyer, you'll want everything documented ; as proof of the exchange details should you ever need them. Protecting you from the loss of any part of the equity invested to create this financing, in the event buyer defaults on the loan.
Qualifying the buyer might be easier than you might think. The purchaser can simply get his credit scores from the credit reporting agencies and show them to you. Drawing up the documents wanted to create this mortgage can be attained with the assistance of some online services.
it's common knowledge some purchasers will default on their payments. This is one of the reason owners keep away from financing their own homes.
Knowing the hazards involved with owner financing it still is a rewarding way to invest the equity of your home. You can always sell the estate note you create thru your real estate solicitor to an investor for a lump sum of cash instead of receiving monthly payments over time .Learn more at No Credit Check Homes
