In my market, the Florida Keys we have seen an increase in offers of seller financing at least I have with my own listings. In some cases the seller can get a better price for thier property. other issues we have down here are Mobile Homes which financing is not only difficult if you can get it but also very costly for a buyer. Another issue that we have is non conforming downstairs enclosures, these properites are ones that we urge the seller to do financing. I have also noticed that this market has sparked more cash deals.
well - it's because of current "mrket" conditons, that's why.
in this market, many sellers can't afford to loan money - they are barely walking away with much of anything in the first place.
In addition - who wants to loan money with the very real possibility that they could wind up taking the house back when it's worth less.
You're in Fl - one of the worst hit states in the country..............certainly you can see the pitfalls of doing what youre suggesting.
Today, people are underwater or close to it, they've got mortgages over 5% and the going rate is under that. And buyers are increasingly skinny. Who wants to sell their house to somebody who needs closing costs paid AND at a point or two below the underlying mortgage . . .?
In many cases, people looking for owner finance can't get a loan because they don't take care of their credit. If the bank won't loan them money, a stressed homeowner can't either.
I think you have a few great answers for and against the issue. Many sellers can, do or would consider being the "bank". The problem is that the property owners that have equity usually are not selling. The risks of PMM's is the good possibility of default and potential damage to the property with little security to cover the damage.
When property values were at all time highs- many owners welcomed the PMM concept - with hopes that the buyer would default and then reclaim the property.
A seller with 100% equity and a buyer with substantial investment (down payment ) could be the the right combination to make this situation more popular.