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The Hagley G…, Real Estate Pro in Pleasanton, CA

Are Realtors seeing ore seller financing these days?

Asked by The Hagley Group, Pleasanton, CA Sun Aug 5, 2007

I'm starting to see more and more....in areas that I least expect it. I would be curious about others' experience....

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I am in Marin. I started seeing 'Sellers are willing to consider seller financing' comment popping up in some of the listings. My office also started to discuss this in our office meeting, first a couple of months ago, and then just this week. There is actually a 'Seller Financing' form created by California Real Estate Department that we can use.

You did not ask this, but somebody else mentioend - I also have somebody contacting about Lease with Options to buy. Basically they are trying to sell their house out ot town that's a very slow market (Seattle) and they don't want to carry two mortgages, hence the question. There are also MLS listings that closed with Lease with Option to buy .
0 votes Thank Flag Link Sat Aug 11, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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I am seeing things like lease options that we would not have had a few years ago. The problem with seller financing is that few sellers can actually afford to do it and since mortgage money has been easy to come by, there is not much of a reason for a seller to need to finance.
Web Reference: http://mibirmingham.com
0 votes Thank Flag Link Sat Aug 11, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
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It is just beginning. What I suspect will be an increasing number of sellers carrying second mortgages to make it easier for buyers to qualify given current liquidity problems and the tightening of lender guidelines on more marginal buyers.
0 votes Thank Flag Link Sat Aug 11, 2007
We see very little in Texas because of the ways the laws are written. They were changed a few years ago and while it does not prevent owner financing, it makes it more difficult and potentially opens the owner to a great deal of liability. The reason for this is the buyer typically holds the title here with a lender having a lein against the property. Most owner financers want to hold the title and provide it when lien is paid off....ie contract for deed. There are very strict accounting procedures now with contract for deed and the attorneys I have disccussed it with advise not doing it.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Tue Aug 7, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
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Hi Cindi- I haven't seen it as much in SFR residential listings, but we're definitely seeing more seller financing with income properties. With the rapid rise in property values and the relative stagnation in rental incomes, along with the tightening of lending standards, sometimes seller financing is the only way to bridge the gap so that the deal can go through.
Web Reference: http://myeastbayagent.com
0 votes Thank Flag Link Mon Aug 6, 2007
We are not seeing owner financing in our market. I shall be curious to see if it becomes more prevalent. Good question. Curious to know what other markets say and I think the responses hold value for consumers.
0 votes Thank Flag Link Sun Aug 5, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
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Cindi,
Seller financing is not very prevalent in my market place because it requires the Seller to have a good deal of equity in the property being sold with Seller financing. Unless the Seller has owned the property for a long time or put a good amount down, it's not even an option. Also, Seller's who are selling to buy a larger home need to cash out their equity, so Seller financing won't work for them either. Many other listings in this marketplace are actually over encumbered and trying to do what we call a short sale or short pay transaction. So of course Seller financing on these are also not an option. With values still drifting downward, I wouldn't recommend Seller financing right now since the only cure for non-payment is forclosure.
0 votes Thank Flag Link Sun Aug 5, 2007
Cindi,
In some of the rural areas I serve, seller financing has always been around. Until the 20th (yes, 20th, not a typo) century arrives, I expect it to continue. I don't care to extensively comment on intent or default rates in this public forum--suffice to say, it's actually a side business for some unscrupulous people. I've heard many very sad stories. A "poster child" situation that should help popularize buyer representation as the standard. Back to your question, I have seen a small increase in legitimate offer to finance by owners. Not much mind you, but enough. Stricter lending controls are taking their toll on the middle class. A wise owner, with the financial stability and savvy to finance, stands to make a tidy profit.
0 votes Thank Flag Link Sun Aug 5, 2007
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