Drive through any neighborhood in the US and you will see rows and rows of homes for sale whether it is a FSBO or listed with a brokerage firm. Because of the credit crisis and the tightening of bank's lending requirements, a buyer during these economic times, with a good credit are being quoted higher than normal interest rates for a 30 year mortgage or worse yet, not being approved at all, even with a 20% down payment. From the seller's perspective, they see a healthy inventory of homes for sale in their neighborhood so the seller has to get creative and I'm not talking about just lowering the asking price of their home. The seller may offer seller financing to attract a high number of buyers.
This climate calls for seller financing. The buyer can get a good interest rate and the seller needs to sell. It makes a good transaction. Now, more than ever, this economic climate is producing billions of dollars in seller financed mortgage notes. And because of the price of your average grocery bill going up and up, the owner of these notes needs to cash out to satisfy a debt, pay for college tuition for their children or whatever the case may be.
I have been contacted by many real estate agents who have told me that they are acquiring exclusive listings by suggesting that sellers offer their property through seller financing; an idea the seller probably wouldn't have thought of on their own.
It's an extremely busy time in the note business!
Comments(1)