How does seller-assisted finance work? We have a down payment of 40% on a condo, steady income, but low credit scores.

Asked by Beatrice31, Chicago, IL Wed Apr 17, 2013

Is it possible to have the seller carry our financing?

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11
JIM Michaels, Agent, Chicago, IL
Sun Apr 21, 2013
check out Lisa's blog nice explanation on seller assisted finance

http://www.lisarichardson.net/custompages_reports/affectyour…
0 votes
Wendybatch, Home Buyer, New York, NY
Sat Apr 20, 2013
Hi - I am a UK based investor and have just funded a private mortgage note on land in Indianapolis. The title company wrote up the note and filed it with the court. I am actually looking to do a similar thing in Chicago as that works better for me than renting out property. How much are you thinking of spending and do you have an area in mind? We might be able to work something out. Email me wendybatch@yahoo.co.uk
0 votes
JIM Michaels, Agent, Chicago, IL
Thu Apr 18, 2013
anything is possible but not likely call Wesley

Our Team | United Equity Mortgage Corp.
http://www.unitedequity.us/our-team.html15+ items – Wieslaw (Wesley) Jura Vice President. NMLS ID 225274 ...
Wieslaw (Wesley) Jura Vice President. NMLS ID 225274 773-304-3412
Paul Gondek Senior Loan Originator. NMLS ID 226276 773-304-3414
0 votes
Manuel Brown, Agent, Chicago, IL
Thu Apr 18, 2013
Yes,

It is possible to have the seller carry financing. Because inventory is so scarce I am not sure why a seller right now would do that. As you have heard from other broker it does have risk on both parts. You would not enter into such agreement without first going through the proper channels, which means having your own attorney and the closing go through the proper channels. That being said you have many choices to repair your credit and to take a conventional loan.
0 votes
Joe Schiller, Agent, Chicago, IL
Thu Apr 18, 2013
it's hard to find and it's not worth it.. rent and work on your credit
0 votes
Philip Sencer, Agent, Chicago, IL
Thu Apr 18, 2013
Avoid seller financing unless you have an attorney handle it. Contact some lenders to see just what your options might be. My web site has some references.
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Nancy Doyle, Agent, Cape Coral, FL
Thu Apr 18, 2013
Be very careful in seller financing. I have seen it go bad for both buyer and seller.

Best of luck,
Nancy
0 votes
David Hanna, Agent, Chicago, IL
Thu Apr 18, 2013
Yes, they can, but only if they own the unit and have no mortgage. Most mortgages have an a acceleration clause which is triggered if there is any type of owner financing put in place, and leaves you as the buyer in a vulnerable postion.
As you have seen, finding the owner who can and will do this is not an easy task.
0 votes
Nicholas Rad…, Agent, Chicago, IL
Wed Apr 17, 2013
I think you mean to ask about seller financing not seller-assisted finance. With a 40 % down payment you are a good candidate for seller financing. In seller financing the seller acts like the bank. You make your monthly payments to the seller based on the terms (interest rate and number of years) that you and the seller agree to. The trick to this is to be able to find an owner that would agree to wait for the balance of their sales proceeds.
Nick Radakovich Home Sales Realty
0 votes
Bill J Delig…, Agent, Naperville, IL
Wed Apr 17, 2013
Beatrice,

The seller acts as the bank and at closing you will give them your 40% and then based on the terms you come up with you will make your payment to the seller for 1-5-10-15-30 years. (whatever you have agreed to). They ofcourse must agree to this. Maybe you can use the next year or two to improve your credit and then refinance into a new loan.
0 votes
Ivan Sagel, Agent, Chicago, IL
Wed Apr 17, 2013
Beatrice,

Seller financing is uncommon in our market. This senario may work if the seller is a long time owner and has a large equity position.

Best regards,

Ivan Sagel
@properties
312.515.7823
Ivan@atproperties.com

I always appreciate your referrals…
0 votes
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