Seller Financing – a tool as old as dirt (not new)

This financing technique has been around forever & is not a new idea.  It’s only a new idea if you consider banks & mortgage companies don’t like it because they don’t make any money on it.  Don’t expect your local banker to say hey, sorry we won’t approve you for a loan why don’t you try seller financing….Ha, ha, ha…. never happen.

The weak underbelly of seller financing lies in the lack of regulation hence the potential for unscrupulous individuals to take advantage of sellers.  Since people have had stuff that someone else wanted but couldn’t afford outright they have said how about you pay me this much every month until you pay me this amount then it will be completely yours.  Heck, this is how banks began and they don’t like encroachment on their business – why would anyone want competition making their job harder and profit lower?

There are pitfalls to seller financing, they key is to know what you’re getting into, get complete disclosure, sign everything, keep copies and if you don’t understand it get some help from an attorney who understands real estate and contracts.  Asking a Banker, Realtor, Broker, etc. with a vested interest doesn’t serve your best interests & you can pretty much predict their reply.

Be safe, live life fully and have fun!  Life it too short to do it any other way.

Larry InDeed

Seller Financing: An Idea who’s time has come

Do you want to sell your house but have figured out that buyers are as scarce as snowflakes in the Arizona desert? If you’ve owned your home for a long while and have equity in it, your best bet might be to offer seller financing.

Seller financing essentially means that you will act as the bank when the bank won’t. It’s an idea whose time has come because of tighter lending qualifications. According to the National Association of Realtors, there’s already been an uptick in the number of homeowners who carry loans for their buyers.

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One Response

  1. […] normally requires a deposit on the property and payment at arranged periods for the balance. With seller financing, payment can be monthly, every three-months or other […]

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