When a seller considers owner financing there are many details to consider. Remember you are acting as the bank. You are lending your equity to a buyer. This may not bother some sellers, though most people feel that owner financing is too risky.
One of the first things you want to consider is how long you will finance the mortgage. 30 years is a long time to wait for most of your equity. Make sure you detail the terms so there is no misunderstanding between you and the buyer.
The Interest rate you negotiate can make your mortgage more secure if you can charge a higher rate to the buyer. What legal hassles are involved if they stop paying? Believe me, sometimes things change in peoples lives, layoffs, etc. Seller financing is not something you should jump into without careful consideration.
Because of falling home prices in most of the country and the lack of affordable mortgages for buyers is there a way to use owner financing to sell your home without the risk. Is there a better, easier way to sell your property with owner financing? What if you could sell your mortgage at the closing table and walk away with your equity in cash. How would you feel if you could sell your property in weeks, not months or longer? Who would like calls from buyers with low credit scores, and you can say yes.
Sounds too good to be true. Remember the old saying, every cloud has a silver lining. There is a plan for helping sellers with owner financing that was popular during the Savings and Loan disaster years ago. You may not remember 18% interest rates and gas shortages.
Blow off the dust, if you know the history of owners financing you can find your best solution.