Posted on: 26th Oct, 2008 01:32 pm
My husband and I have been trying to sell our home for 7 months. We've had an offer from a buyer, but with owner finance. We DO NOT want to get in a sticky situation in the future. Overall, is owner finance a good idea if I am the seller?? Any advice would be greatly appreciated. Thank you.
Hi betsy_h!
Owner financing is not a bad idea but there are certain things which you should keep in mind. If you have a mortgage on the property which you are planning to sell, then the lender may ask you to pay off the mortgage. Apart from this, you should also make sure that you involve a third party to write a promissory note on your behalf and the neighbor's behalf. On this note you may write down all the terms and conditions of the deal. This will help you in the future.
Feel free to ask if you have further queries.
Sussane
Owner financing is not a bad idea but there are certain things which you should keep in mind. If you have a mortgage on the property which you are planning to sell, then the lender may ask you to pay off the mortgage. Apart from this, you should also make sure that you involve a third party to write a promissory note on your behalf and the neighbor's behalf. On this note you may write down all the terms and conditions of the deal. This will help you in the future.
Feel free to ask if you have further queries.
Sussane
Hi betsy_h!
In my opinion, owner financing is not a very good option. The buyers will get a lot of facilities due to owner financing but it is the seller who is at risk. If proper documentation is not done, there are changes that you are cheated by the buyer. So if you are going for an owner financing, make sure that you have proper documentation of the terms and conditions so that you are not cheated later on.
Thanks.
In my opinion, owner financing is not a very good option. The buyers will get a lot of facilities due to owner financing but it is the seller who is at risk. If proper documentation is not done, there are changes that you are cheated by the buyer. So if you are going for an owner financing, make sure that you have proper documentation of the terms and conditions so that you are not cheated later on.
Thanks.