Home Buying in 29615>Question Details

Rick Stroud, Real Estate Pro in Greenville, SC

Are you an advocate of owner financing? Why ?

Asked by Rick Stroud, Greenville, SC Mon May 14, 2012

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Roland Vinyard’s answer
On the contrary, I like it. Simple and easy to do, gets the old owner a greater percent of interest than he will receive if invested most other places. It saves the buyers lots of extra charges, such as points, required appraisals and inspection.... On the other hand, I give the owners the caveat, "If you are going to serve as the bank, act like a bank".
0 votes Thank Flag Link Wed May 16, 2012
Owner Financing can be a desaster. Just keep in mind that owner financing will normally require one to have the property transfered into the Buyers name, which can turn out to be more that you have bargained for as in eviction process is not the same, if Buyer(s) have any Tax issues, Judgements, Liens they may be attached to the subject property, etc.

I personally stay away from owner financing or option to purchase contracts. You may want to seek legal advice from an Attorney Licensed to pratice law in your state for more direction.
0 votes Thank Flag Link Wed May 16, 2012
Yes! As lending conditions have tightened and the market has slowed seller financing is a great alternative to traditional methods. Typically the owner agrees to transfer title in exchange for a note and interest in the property. The seller takes the place of the bank. It can be simple and straightforward. You need to consult an attorney before proceeding.
0 votes Thank Flag Link Tue May 15, 2012
Yes! It is income for the seller and a way for the "not so credit worthy" but stable buyers to purchase a home. Lots of people have "bad credit" due to loss of job, health, divorce, forclosure and a multitude of other problems, but can still make a house payment if given the chance.
0 votes Thank Flag Link Tue May 15, 2012
There is a lot of potential for some serious gains if you finance the sale of your own home. Of course, the only way that owner financing works is over the long term. If you're looking for a quick pay out then this obviously isnt the route for you. You can make more money in the long run with owner financing because any interest the buyer pays is going straight into the sellers pocket rather than the banks. So, if your house is paid off and all you are in need of extra long term income then yes, I would recommend owner financing as an option!
0 votes Thank Flag Link Mon May 14, 2012
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