How to Owner Financing Contract | Owner Financing Contract

Owner Financing Contract www.reimaverick.com If you are in danger of an upcoming foreclosure and you’re looking for another way out, knowing what an owner financing contract is absolutely essential. Here we’ll explain exactly what an owner financing contract entails, how you go about getting one, and what the risks are when using an owner financing contract. Owner Financing Contract | What Is It Exactly? An owner financing contract basically puts the responsibility for paying off the remaining amount of the mortgage on the buyer of the home. Many might ask, ‘why would I want to sell my house if I’m not going to make any profit?’ Thats a good point, you wouldn’t want to use an owner financing contract if you aren’t facing a foreclosure. However if you’re facing a foreclosure then your other options aren’t looking very great. If your house undergoes a foreclosure then your credit is going to take a major hit, however if you use an owner financing contract then you can definitely protect your credit score from substantial damage. Now you may be wondering why a buyer would want to go along with an owner financing contract in the first place. Well have you seen how difficult it is for someone to be approved for a loan these days? Although mortgage rates are low and home prices are down, banks are implementing extremely stringent loan policies that require most applicants to have near perfect credit to be approved. With an owner financing contract on the other hand, buyers that

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    5 thoughts on “How to Owner Financing Contract | Owner Financing Contract”

    1. It’s called a Land Contract in California. This is not exactly correct. You can sell your house for market value the buyer puts a down payment and the seller carries the loan.

    2. NO! A Land Contract IS NOT a short sale. It has nothing to do with negotiating with the lenders/banks for a reduced purchase price, lower than the loan amount. The banks do not have any say in who the owner sells their home to. As long as the buyer can make the payments on the underlying loan(s). What state are you in?

    3. Land contracts and owner financing is an EXCELLENT tool to help people get into homes. The problem is that most homes have more loan on them then what they will appraise for. As long as the buyer does not care about that, and believes the market will come back, Owner financing is the way to go. All agents need to get up to speed on this.

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