Seller Financing
(aka Owner Financing)

Our seller financing program can be the answer to your problems regardless if you are an owner, buyer, real estate agent, mortgage broker, landlord, or note buyer.

We can help you sell, buy, move properties, arrange loans for clients, generate monthly income, purchase or sell real estate notes nationwide.

This type of financing uses many different names such as owner financing, seller financing, owner carry back, owner take back, holding or carrying a note.

No matter what phrase is used, the owner provides financing instead of the bank or mortgage company for the purchase of a property. Seller financing is usually in the form of a note, and the amount and reason for the note can vary. Therefore, the note can be used for part or the entire down payment or purchase price. In addition to mortgages and promissory notes, and land contracts, the owner can also help tenants (potential buyers) with the purchase of the property using a lease option agreement.

Traditional Real Estate Process
An owner wants to sell his/her house for $100, 000 and they owe $60, 000 on the house. A buyer has $20, 000 for a down payment and obtains an $80,000 loan for the purchase of the seller’s house. The seller pays off the $60, 000 loan and has $40,000 in their pocket, plus or minus some more due to closing cost and other related cost for this real estate transaction.

Problem
Due to the current housing market, the owner is unable to sell his or her home, or the owner’s house is no longer worth $100, 000. As a matter of fact, in some instances the house is worth less than the amount owed on the property. As a result, the owner is unable to sell their home at a price where they can receive money in their pocket to do whatever they plan to do with the money.

Now if the owner does not have an extra $5,000 - $7,500 in a bank account sitting around collecting dust some where, real estate agents won’t be interested in listing their house because the real estate agents’ commission is usually paid from the proceeds of the sale of the house. Even if the owner does have the money to pay the real estate agent, the current declining property values will make it next to impossible for both the real estate agent and the seller to sell the house the normal traditional way.

Solution
The property can be sold using owner financing. Listed below are three ways owners can help with the sale of their property.

Mortgages and Promissory Notes
A mortgage or promissory note held by the seller can be in the form of monthly payments and/or a future single lump sum payment. The mortgage or promissory note can be a first or second mortgage depending on the existing financing on the property.

Land Contracts
A land contract allows the owner to retain legal title of the property while the buyer has possession of the property, know as equitable title. The buyer will make payments and only receive legal title upon paying off the mortgage or refinancing the property.

Lease Option Agreement Purchase
This is an agreement between the seller and tenant to purchase the property in the future. The tenant may need additional time to improve their credit or raise money for a down payment. All or part of the rental payments can be used for the down payment when the tenant makes the purchase. For a free lease to purchase option agreement and more rent to own homes information click here.

Seller’s Advantages
• Fast Closing
• Monthly Income or Lump Sum payment
• Higher Selling Price
• Maintains legal title
• Attracts more potential buyers
• Payments are willable
• Tax benefits for installment versus a large lump sum
• No longer a landlord

Seller’s Disadvantages-possibility of non-payment, and owner still responsible for payments to the mortgage company.

Buyer’s Advantages
• No qualification requirements from the bank
• Low closing cost (no lenders fees)
• Little or no money down (Down payment assistance)
• Flexible financing
• No PMI
• Fast closing
• Less than perfect credit won’t stop purchase
• Additional time is given to improve credit score or raise more money

Buyer’s Disadvantages-sellers problems such as divorce or tax problems may affect eventual purchase.

(Owner) Seller Finance Program
We have a seller finance program that will help:
• Owners sell their properties
• Buyers With Down Payment Assistance
• Real Estate Agents move hard to sell properties
• Mortgage Brokers with financing on properties
• Landlords receive monthly income without managing their properties
• Note holders sell their notes

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