Seller Financing Programs Alive and Well... A quick summary

“Seller financing” is a term that has been used throughout time to generalize the function of a seller providing or allowing any existing financing on a piece of real estate to continue to be left in place while the ownership of the property changes. There are many forms under the heading of “seller financing” that can be confusing if not understood correctly. There are also a lot of myths and half-truths concerning this type of financing. Some of those different forms of seller financing have been challenged and, as a result, the government has attempted to define this process. State and federal governments have instituted various controls and procedures in an attempt to provide consistent guidelines for others to understand how the process of transferring title to another individual while continuing to leave any underlying mortgages or encumbrances in place on the property. To this day, regulations continue to change attempting to define and control this process. It is important to understand for someone reading this message that our company has been working with seller financing since 1980. We have developed the tools over time that allow a seller to sell his property or transfer the title to another individual without violating any of the rules and regulations concerning the underlying mortgage. This evolution of the process gives a much stronger feeling to both buyers and sellers that using seller financing is a viable tool to accomplish an end result that may not work with traditional financing.

1) Seller’s perspective. Sellers may find that once all the options to sell their property are presented to them, they find that the use of seller financing can be a viable option to assist the seller in realizing specific objectives that traditional financing do not offer. Many times there are circumstances that sellers find themselves in that will not allow them to sell their property because the property does not meet lender guidelines. Many times a seller finds that they are unable to provide the capital requirements that it takes to put a property in tiptop condition so that the lender will loan on the property to a new buyer. Many times a family crisis will create situations where traditional financing will be more difficult. And, there are other circumstances that a seller finds themselves in that can inhibit the sale of the property due to the inability to get the property financed. Please contact us to evaluate your particular situation and answer your questions.

2) Buyer’s perspective. Buyers, just as with sellers, find themselves in circumstances that will not allow them to qualify under the strict and specific guileless of the banking industry. There are various reasons why an individual cannot meet the specifications and qualifications including such things as being self-employed, as not having enough credit history, new job status, family divorce and other types of reasons why an individual does not meet the specific requirements of getting a new loan. Through providing alternative financing, such as seller financing, buyers are able to structure transactions with the seller that are beneficial to both parties concerned. We assist sellers and buyers to reach acceptable terms and conditions that are beneficial to both parties with proper protection for all concerned. Please contact us and give us a chance to show you how you can participate in home owner benefits without the restrictions of the lending industry.

3) Real Estate Professionals. It is not uncommon, through our association as professional real estate brokers, to find and assist other real estate people in being able to provide options for their buyers and sellers to participate in the process of home ownership that they may not normally be able to provide for their clients. It is uncommon in the real estate licensed community to have adequate experience and training in the use of these various tools that help facilitate seller assisted financing. Many professional real estate people come to us to learn how to, not only provide these services for their clients, but to also be able to participate in this ownership process themselves as individuals. Please check our Meetup schedule to attend various classes that will show you how to be of more service to your clients as well as for your own personal benefit.

4) Investors. Investors find themselves today as they have over the past many years subject to the lending and banking rules and regulations to finance their investments in real estate. Because of the limitations and fluctuations in the policies and procedures of the banking industry, seller financing is one way that opens the door for all people to be able to buy and sell real estate for their own benefit and not be limited by the government and the banking industry. As a part of our 35 years of experience in the real estate business, we have continually modified and updated the tools necessary to be able to purchase and own real estate as the traditional lending environment has changed. If what is said here is of any interest to you, please make contact with us so that we can individually explore any questions that you may have. It will mean additional money to you as an investor.