Seller financing is where the seller assumes the lender’s role and carries the unpaid balance of the purchase price as a loan to the buyer. There are three different types of contracts that can be used:
- Mortgage Notes
- Deeds of Trust
These contracts are all legally binding documents that offer the mortgagee (Mortgage Banks or Private Individuals) a proof of debt and describes the terms under which the note is repaid.
The following are the differences between these three types of contracts:
- Mortgages – The borrower has legal title and all rights of ownership while the lender holds the lien and an interest in the property.
- Deed of Trust – The borrower conveys title to a trustee who holds it as security for the lender.
- Installment Contract – The seller receives a normal down payment and the borrower makes regular installment payments until the balance of the purchase price plus interest is paid in full.
The installment contracts are the most common form of seller financing because its the easiest way to repossess a property if the borrower stops making payments.
Seller financing is a great option for a property owner that does not need the equity out of their property and is looking for consistent monthly cash flow. Instead of renting, seller financing gives a property owner the ability to:
- Pass maintenance, tax, insurance and responsibilities of ownership to the buyer
- Still receive a monthly cash flow.
- The buyer is often time willing to purchase a property over market price and higher interest rates.
To learn more about seller financing, please click on the link below:
If you are interested in turning your property into a monthly cash flow machine, then contact us TODAY to discuss your seller financing options.
Purchasing a home with seller financing is a great opportunity especially if you have a less than desirable credit score, foreclosure or bankruptcy on your record.
- Real estate prices are at an all time low.
- Take advantage of these low prices.
Once you purchase a property, you will have ownership rights to property:
- You can deduct the interest paid to the seller each year.
- Make necessary improvements to the property.
- Improve your credit score or financial situation and refinance the property out of the seller’s name.
To help with improving your financial situation, we offer financial consulting so that you can improve your financial position (credit improvement, savings plan and debt reduction). CLICK HERE for additional details.
Give us a call TODAY to discuss how we can help you take advantage of these super low prices before they start to appreciate! CALL NOW!!