Seller Financing is becoming more popular and can be an excellent way to
sell your property quickly and at a good price.
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Instead of your Buyer borrowing from a third party - such as a bank - the Buyer makes payments to you, the Seller, acting as the mortgage company.
These mortgage- backed promissory notes can be created for the sale of your:
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Single family home
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Condominium
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Multifamily residence
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Commercial building
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Other real estate
Since the early 1980s, when mortgage interest rates reached record highs, owners anxious to sell their homes or property created affordable promissory notes.
Notes were created in this manner:
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The Seller's mortgage (from his bank or other lender) would be assumed by the buyer, plus
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The Seller would create a loan to the buyer created from the equity in the house.
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The Buyer would then pay the Sellers first mortgage (to the primary lender) and the second Note to the Seller.
In addition to the individual home seller, seller - finnacing also became available from Land developers who offered seller-financing on subdivided lots for houses or mobile homes.
At this time, seller-financing is again a desired alternative to the buyer who is facing from conventional lenders:
Whether you are considering offering Seller Financing, or already have done so... there are some things you should know ... especially if you want to sell that mortgage, trust deed or land contract for CASH.