Homes for sale with owner financing
Although seller financing can provide some excellent options for you as a buyer, the strategy is not without some risks and dangers to be aware of. This section is going to look at 3 of the most common concerns when dealing with seller financing and offer some tips on overcoming those potential problems.
Owner Financed and Lease Option homes for sale have been the primary focus of since late 2002. The statement in this section that a mortgage application has been completed by the buyer and received by the owner shows that the agreement is meant to be formal and that the owner had full knowledge of the buyer’s finances prior to agreeing to lend the money.
You don’t necessarily have to own them free and clear, but in most cases – banks will prohibit you from selling your property with owner financing while you still owe them money (this provision is baked into the loan documents of many conventional lenders).
An additional protection is that a trustee has the deed instead of the seller, so if the seller dies or flees to Mexico or conveniently owner financing forgets that there is a contract, the Deed of Trust in an owner financed deal will show that the buyer is the rightful owner.
You need to also be very thorough with your background checks (are there any law suits, liens, etc.). Also, be sure you consult with a real owner financing homes estate attorney because there are financing, disclosure and repayment-term requirements that need to be met, and do vary per state. For more information, please visit our site http://anyhomeownerfinancing.com/.