Buying & Selling Properties...Seller Financing ?
Buying a property with seller financing can be in your favor most of the time, however I have heard that selling your property with seller financing can be a mistake ! Is there a clause that can be put in the contract to secure your property for quick reclaim if the buyer defaults.
I bet a lot of banks now wish there was. The buyer can agree to deed it back to you, but if they are like most people they will ride out their foreclosure until very close to the end, letting you accrue all the attorney fees, costs, etc. At that point I would just let it go to auction.
Quote:
On 2008-03-21 23:27, gainesvilleJ wrote:
IAt that point I would just let it go to auction.
That is some very horrible advice. there are solutions around the problem, you can always offer keys for cash, moving assistance and a variety of other things. I would never suggest to sit on their thumb and lose money. Most owners that provide seller financing have underlining financing theirselves and a full foreclosure can wipe out their funds and make it hard to bounce back.
bad advice, bad.[ Edited by charlotteinvestor on Date 03/23/2008 ]
despite what all the infomercials might say, there is risk associated with seller financing.
You can mitigate that risk by selling the note.
Also, make sure you have an atty go over the lending agreement. A subtle thing like leaving out an atty fee clause, and BK fees can hammer you.
The other think that I saw was a default interest rate. If they are in default, the rate to the note go to something much higher then the face note rate.
ask for a payment register/receipts/cancelled checks from the note holder or payor if they are friendly..
Otherwise caveat emptor.