Sell Your Home Fast With Owner Finance

ddkity82 · Wysłany: 23 Mar 2011, 06:0 Temat postu: Sell Your Home Fast With Owner Finance

By : Phill Grove
Submitted 2011-02-16 07:46:56 One of the hottest ways to sell your home fast and fetch a higher price is to owner finance your home. Owner financing allows a buyer to purchase a home without having to qualify for bank financing, which can be very difficult to get these days. The new buyer will instead be paying a their monthly mortgage payment to the seller. It's similar to renting, except that the buyer has ownership to the property and thus takes on the full responsibility for maintenance, improvements, taxes, etc.
Advantages and Disadvantages of Owner Finance
Purchasing a home with owner finance can save the buyer thousands of dollars in financing fees and those savings can be put directly into the buyer's (or seller's) pocket. Homes with low-interest rate mortgages that are being sold with owner finance can be attractive to buyers that might not be able to obtain a low interest rate loan in today's mortgage market. Any home (and mortgage) can be offered with owner financing if the right legal arrangements are made. The major disadvantage of selling a home with owner finance is that the buyer could default on the loan at which point the seller may have to foreclose on the buyer and the home would once again be owned by the original seller.
Common Owner Finance Questions
Can someone actually assume my loan?
Probably not. Virtually all loans are unassumable, with the exception of some FHA or VA loans, which may be assumable,[link widoczny dla zalogowanych], but are very difficult for many buyers to qualify for.
If the loan is not assumable,[link widoczny dla zalogowanych], how can I legally sell it with owner financing then?
There are actually several ways to do this, however,[link widoczny dla zalogowanych], it gets a little complicated depending on your loan and situation. Also, new Federal and state restrictions on how these sales can be organized. Make sure you work with a lawyer or real estate professional with experience in owner finance if you are looking to perform an owner finance transaction.