D

Live Blog Feed

Will Owner Financing Help Sell A Home?

Posted on August 25th, 2008 1:10pm by Candy Evans
Filed under Celebrity Homes, Changing market trends in Real Estate, Multiple Home Ownership, Owner Financing, Real Estate, Realtor News, Uncategorized, investment Real Estate

I have a home on the market in San Antonio, and one party has asked me about seller-financing. My in-house barristers tell me that is very risky in case of default, but if I get the house back anyhow, how risky can it be? I have begun researching this issue and welcome your ideas, input. (Peggy and I both do, actually.)

5 Comments to “Will Owner Financing Help Sell A Home?”

Lydia @ August 25th, 2008 at 3:03 pm

Unless you gave birth to the buyer, don’t even think about owner financing. If they were qualified to afford this house, then they would be able to get a loan.

What’s the worst that could happen?
1. They don’t make payments & you have to foreclose on them. This is a lengthy and expensive process. More difficult than standard eviction.
2. They trash the house and take the appliances, copper wiring & plumbing, etc. Leaving you with a property worth much less. And they are long gone by the time the lack of payments hits your radar. Then you still have to go through the legal foreclosure process.
3. They perform some kind of criminal activity on the property while the ownership is still in your name leaving you with libilities. I’m not talking about drug dealers leasing a home – where you have a signed lease. I’m mean activities involving fraud.
4. They don’t pay their taxes or utilities leaving you open to problems when you try to sell the house to a legitimate buyer later.

Should I go on? If they’re willing to put down a huge cash down payment (like 30% or more) then it might be worth the risk. It should be enough to cover the cost of totally rehabing the property plus legal fees.
drew @ August 25th, 2008 at 3:59 pm

Errrr…are you sure that’s the right MLS link?
JS @ August 25th, 2008 at 4:44 pm

Listen to the lawyers — run away from owner financing, especially when you can’t just drop by the house every day.

At the very least, hire a lawyer to represent you — make sure all the paperwork gets filed with the appropriate agencies, etc.
Candy Evans @ August 25th, 2008 at 11:07 pm

Drew, that was not the right link. Not even same part of town. God I need a copy editor as my Siamese twin. Thanks so much — I corrected it. Need to sell this house fast… any buyers?
mary @ October 25th, 2008 at 6:02 pm

I HAVE A GREAT BUYER that simply won’t qualify for a loan b/c of IRS issues; however, he has plenty of money to put down and is considered VERY LOW RISK!

Please let me know what side of town your home is located in and email anytime. It is true owner financing is and can be dangerous, but I have known this man for a very long time. He is as solid as they come!

Please email mary at
mlongi@satx.rr.com