Sunday, October 08, 2006

Let's Talk About Seller Financing

I know very well that listing real estate agenst are having a hard time dealing withs ellers these days. Let's face it, the real estate market has changed considerably and it is no longer a sellers market - it is now a buyers market. This does not bode well for sellers and it is even worse if you happen to be a listing real estate agent witha sellers home or condo or other real estate listed on the MLS at one price and there are no buyers showing up to the open houses. Allright, so the cards are now on the table on the real estate board and we have thus far established that there are few to no buyers and millions and millions of sellers of real estate.

What makes it even worse is that listing real estate agents have to go back to their sellers and ask them to reduce the price of their real estate listing. Let's talk about taht for a second. If someone drives by a real estate sign and sees "new price" on the real estate sign then what do you think that buyer is going to thing? New increased price? Come on, that's not fooling anybode. There is spin control and there is spin control and let me tell you that the real estate marketplace has spun out of control. Let's get this back into more normalcy. here si how to do it - bring back the real estate buyers. How is this accomplished? Through seller financing, seller held seconds, owner finaincg and the like.

Here's how it works. The buyer qualifies for a new first mortgage for 80% or higher of the sale's price. the buyer can put down 0% to 5% and the seller holds the rest as second mortgage. the seller is the mortgagee and th buyer is the borrower of the second mortgage. This is owner financing and also seller held financing. There are of course, concerns that a seller may have in considering seller held second mortgages and the seller should consult a real estate attorney before doing any seller financing.

Owner Will Carry


Blogger Money Pays The Rent said...

This is an interesting approach to seller financing and I am interested in finding out more about how owner financing can assist if someone holds some seller financing

5:04 PM  

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