Lots of people are having a very difficult time getting mortgage loans these days; that is no longer a secret. Some of those people will give you a call when you advertise your home for sale with owner financing online or in the newspaper. Naturally, getting calls from prospective buyers is the first step when you want to sell a house, especially with owner financing.
Now, the fact is that people don’t always happen to think about selling a house with owner financing. It can become a deep subject, having many legal aspects involved with it, but if you’re interested in selling a home with owner financing, then I suggest you get in touch with a licensed attorney in your local area. I don’t intend this article to provide legal advice; it is just some reasons I like selling houses with owner financing if they qualify. But I want to caution you that federal and state laws need to be considered before you jump into the arena to advertise your home for sale with owner financing.
Please consider note of the fact that I am primarily discussing homes that are debt-free, meaning there is no mortgage loan or owner financing already in place. Many people inherit homes or find themselves with an extra home for some reason, and they have no interest in living in it themselves. If you have a home that you don’t want or need, and you simply want to sell a house, then you may want to consider selling that home with owner financing.
Eventually, you will have selected some buyers and come to terms on a sales price. That’s when I suggest you get a lawyer to help you draw up a sales contract because there is more than one way to set up the sale of a home with owner financing, and this is the time when you will need specialized advice for your state and your local area. Do not attempt to make up your contracts, even if you find some online you can download, or hardcopy forms your can duplicate. Selling a home on the contract has legal and tax implications that are simply too complex for a simple do-it-yourself contract.
Another aspect of selling a house with owner financing is that you can sell that stream of payments, meaning the income you anticipate for a certain number of years. Essentially, you have legal documents that you can sell to a note buyer. Have you ever heard of a note buyer? They are specialized real estate investors who will pay you cash for your interest in the property with owner financing. They take over your position of collecting monthly payments. This is one way you can sell a house with owner financing and still get cash, although you will have to discount your note to make it attractive to an investor.