JSGolightly, Other/Just Looking in Stephenville, TX

What are the technical processes required for owner or seller financing and who all should be involved?

Asked by JSGolightly, Stephenville, TX Tue May 10, 2011

What forms should be filled out? What entities such as lawyers and title companies should be involved? What is usually discussed when the note is drawn up? What exactly happens when an owner agrees to finance, (who, what, when, and why?)

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2
Don Groff, Agent, Austin, TX
Wed May 11, 2011
I have been involved in several owner financing transactions. You always need to make sure you are protecting your interests so please do consult an attorney. There are several companies who specialize in this type of transaction in the Austin area. I was able to help a client short sale their home and find a more modest owner financed home they could afford. This worked out great for them as they would not currently qualify for a mortgage. Their situation warranted the owner finance option as they were downsizing and getting their finances back on track.

Make sure you actually close in a title company just as you would in any normal purchase transaction. Although all lenders frown upon this type of transaction and have acceleration clauses in their disclosures as long as they get a check each month for the mortgage payment I have not found one to act on it.

This is a complicated transaction where you can easily get burned. Make sure you do your homework and hire an experienced real estate attorney that has done these transactions before.

Best of luck to you.

Don Groff
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue May 10, 2011
Are you looking to get or give seller financing.
Most attorney's will probably tell you this is normally not a good option for either party.
Obviously each situation is different.

You are on the right track though to have YOUR own personal attorney draw up the documents and review everything and sign in their office if you are thinking of doing this.
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