Sunday, October 08, 2006

Seller Financing or Owner Financing

Seller financing or owner financing - my oh my how times have changed. The real estate industry has turned a full 180% and now it is the buyers that are in control of real estate these days. A year ago there woul dhave been a bidding war in the driveway and the real estate home or real estate condo would have sold for more that the MLS sale's price. Today, the wauestion is asked: where have all of the buyers gone?

A million dollar home with curb appeal! Beautiful interior and exterior and flawless! Only problem is that it has been on the MLS for 3 months and no one has come to any of the real estate open houses. This makes it difficult for this particular home to sell witha traditional mortgage financing or standard loan without seller held financing. This is seller held second mortgage financing at its finest and this means that owner financing is definitely a way to get the buyers back. What can be said of owner financing when the mortgage is being done by the seller? There are many things that can be said about this type of seller held second mortgage, not the least of which is that it may not be much different than being a mortgage holder yourself. Please allow me to reiterate that a seller held second mortgage and the seller held financing and a seller second are essentially the same type of owner financing. This can become a way to bring back buyers at a time when the buyers would appreciate a seller that is willing to hold a second mortgage and this may be the way to sell your real estate condo or a single family home that may or may not be currently listed on teh MLS. This may also be a for sale by owner.

Let's discuss the seller held second mortgage and the seller financing aspect of a seller held second. The seller is in fact the mortgagee and the mortgagor is the borrower. The borrower is the buyer. This means that you will be able to find a buyer that will also be the borrower and you, the seller, would be the lender on a seller finanicng transaction.

To conclude, please check with a real estate attorney before considering a seller finanicng transaction. This should be the sellers prudent decision before making seller held second mortgages available to anyone, particularly to someone that is buying a home from you under an owner financing mortgage loan.

Seller Held Second Mortgage


Blogger News & Information said...

I'm thinking that you just might be alittle slow pal, there is already a website that offers seller held second mortgage info. I can't seem to remeber which one does the owner financing but it is something like owner financed.

4:49 PM  

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