When a seller allows a buyer to make payments over time for the purchase of property, it is known as owner financing or seller financing. This private financing by the seller can take the place of a bank loan or be in addition to a conventional mortgage. The payment amount, interest rate, and other terms are agreed upon between the buyer and seller. The amount financed by the seller will Continue Reading about What is Seller Financing?
Accepting payments on the sale of real estate might have made sense at the time, but circumstances change. Many sellers discover they would now prefer cash today rather than the small amount that trickles in each month. Here are just a few reasons people have sold all or part of their seller financed mortgage notes for cash: Continue Reading about Why Sell My Mortgage Note?
Owner Financing doesn't have to mean waiting years or decades to receive money. Sellers have the choice to sell all or just part of their future payments for cash today. Option 1 - When note buyers purchase all the remaining payments on a land contract, mortgage note, or trust deed it is considered a full purchase. Option 2 - When the note buyer purchases just a portion of the remaining Continue Reading about Can I Sell Part of My Mortgage Note?
Why would a seller allow a buyer to make payments over time for the purchase of property? Wouldn't the seller rather get paid now and require the buyer to obtain a bank loan? Here are 5 reasons property owners offer seller financing: 1. Reduced Marketing Times What is the first thing a real estate agent does when property is not moving and has been on the market for 60 to 90 days? They Continue Reading about 5 Reasons Owners Offer Seller Financing
Can you easily locate the original mortgage note? This important legal document should be kept in a safe place, and here is why! The promissory note is a promise to pay or IOU from the property buyer. It spells out the amount due and terms of repayment. In legal jargon it is known as a negotiable instrument. Similar to a check, the original must be presented to collect or prove ownership. If the Continue Reading about Safekeeping the Original Mortgage Note
Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference in usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Mistake #1 – Failing to Check Credit The payer’s credit report lets you know how timely they have paid bills in the past. This is a good indicator of how they will pay on Continue Reading about Avoid Three Seller Financing Mistakes
Many sellers accept owner financing without any idea of how much the buyer can actually afford to pay. The last thing a seller wants is to stress over receiving monthly payments or worse, getting the property back through foreclosure. 3 Ways to Calculate Payment Affordability Before Accepting Seller Financing The amount a buyer can afford to spend on a house depends on their income, overall debt, Continue Reading about Seller Financing – How Much Can The Buyer Afford?
The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision. Why Private Mortgage Note Interest Rates Matter Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not your imagination; it’s inflation. In fact in July 2008 that Continue Reading about Seller Financed Notes and Interest Rates