Agent2Agent in Arlington>Question Details

Judy West, Real Estate Pro in Flower Mound, TX

I have a buyer that is needing owner financing in the Dallas, TX area. They will/can put a large amount

Asked by Judy West, Flower Mound, TX Sat Jun 28, 2008

down. I have never done this before and would like advise on what forms to use and how to protect my buyers. Thank You

Help the community by answering this question:

Answers

7
Judy, Your first step is you have to find a property where the owner is willing to finance it. It is rare in this market. People usually need to get rid of the first debt or have the house payed off in order to move on to the next one.

It's very easy really once that is accomplished. Once you locate the property, you can ask the listing agent about the owner's terms of financing. They will very likely be charging a higher interest rate than market no matter what the buyer's credit is like. Many times, listing agents don't know the terms either so you may want to make an offer and spell out your own terms.

You use your standard trec 1-4. You will not be needing the 3rd party financing addendum. You check the box under 4c and you follow the instructions on the seller financing addendum form TAR 1914

good luck.

Naima
214-289-8555
naima@sumner-realty.com
3 votes Thank Flag Link Sat Jun 28, 2008
Find a home that the homeowner will discount around 15% below appraisal value and then visit http://www.sellorbuyquick.com to see how easily this can be done with private lender funds. This works for investors, agente, builders ...
0 votes Thank Flag Link Tue Oct 14, 2008
Judy,

We can help you with that. We have lot of sellers who can owner finance. It all depends what the buyer would put down and what area are they look into and what size can they afford.

If you wish, give us a holler at vick@reiaccess.com

Cheers, v
0 votes Thank Flag Link Sun Jul 6, 2008
Most mortgages have due-on-sale clauses. You are going to need to find a seller willing to do owner financing who has the ability to do it. I've seen a lot of what Bruce reported. Sellers selling on contract and then pocketing the monthly payment. They default on the mortgage and the new buyer is up a creek without a paddle. They have no legal standing with the mortgage company because they are not the "owner" of the property. Make sure you have an attorney involved if you do find a property.
Web Reference: http://www.CarolPease.com
0 votes Thank Flag Link Sat Jul 5, 2008
Judy,
One thing I find with owner financing is that sometimes the seller wants to leave the existing financing in place. Owner financing now often only works if they own the house outright. Lots of people think they can leave the original financing in place and mostly likely they can't. We've always heard that as long as the payments are made banks won't enfoce the due on sale clause. This is not true. They are currently foreclosing on homes that had owner occupied financing in place and now renting it or selling it to someone else. Also very common these days is for the former owner to pocket the payments and then we see the home foreclosed on with the new buyer in it. They lose the down payment and the monthly payments as the former owner now disappears. This eliminates 99% of the homes on the market. You are right to be very weary of owner financed properties. Not to say there aren't possibilities out there, but very few.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Wed Jul 2, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
They are only looking in the Arlington area, and I have contacted a listing agent that said her sellers would consider owner financing. Just need to know the details. Thanks for responding!
0 votes Thank Flag Link Sat Jun 28, 2008
You would need to locate a property lease, where the property is also for sale, therefore when the buyer is able to purchase they can do so. What amount are they qualified for? I may personally own a property in Dallas currently on the market for $239K 3 bed 3 bath 2619 sq ft. $25K in updates over the past year like a brand new home. Contact my office 972-699-9111 http://www.lynn911.com
0 votes Thank Flag Link Sat Jun 28, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer