Wednesday, October 18, 2006

Seller Financed or Owner Financed?

Seller Financed or Owner Financed? Is the difference merely semantic? This has been a renound real estate curiousity for some time. Granted, the difference may be a small matter to some real estate investors, but in owner financing rhetoric, it is no small matter at all.

The debate has it's begginings not in the difference between seller and owner, but rather in the connotation of financing tha results from the seller or owner being before the word financed. This is not to be confused with the difference between financing and financed or seller financing and seller financed for that matter. Allow me to continue with what may perhaps be boring to many real estate buyers and sellers, but nevertheless, if there is some benefit that will result, then by all means, let it result in this real estate quandry.

Lets, talk about a single family homw or cond conversion that was financing with a private lender through owner financing. The owner was the seller and in this case, the owner financing and the seller financing are one in the same in this real estate transaction. Perhaps you do not see a difference between sellers and owners and real estate being financed with a mortgage may be the same as real estate financed without a mortgage.

To conclude, seller financing and seller held second mortgages provide a wealth of financial sources for financing homes. This may or may not be an owner financed transaction but you can surely see that seller financing and real estate where a seller holds a second mortgage is of value.