Owner financing deals can be difficult to find, but can be a competitive advantage for sellers who offer it. The business owner benefits additionally as he/she receives not only the principal from the loan (what they wanted in the first place) but will also earn interest from the financing as your interest payments go to them and not the bank (e.g. major selling point).

Fewer Potential Properties – Let’s face it – although seller financing can be a great win-win for both parties, the vast majority of homeowners are either unable (due to existing mortgages) or unwilling to carry a contract and provide seller financing.
To answer the other part of your question – yes,

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if you did have a mortgage, you could get around this obstacle by collecting enough of a down payment from your buyer to take out your existing financing (assuming your buyer has enough cash to do this).

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If you are considering purchasing property on owner financing, you should be aware that most owner financing agreements will include a provision which states that if the borrower is ever late on a single payment, then the borrower loses his entire equity in the house.

Understand that if you buy a home using seller financing, and the home has a mortgage with a due on sale clause- the bank may foreclose on the seller, owner financing homes leaving both of you in a financial mess. Again, the simplest solution is to only use seller financing on properties owned free and clear. For more information, please visit our site http://anyhomeownerfinancing.com/.