Over the years I have run into all different challenges in real estate. Guess that's why I love what I do and am still in this profession after 12 years! Here lately I am finding more and more situations of owners thinking they can offer owner financing as a solution to selling their home. Great idea? Perhaps not! Unless you own your home outright then remember all those documents you signed at closing? The ones that I know you read from beginning to end! Right!!?? Somewhere in all those docs was probably a due on sale clause that states that they can call the note payable in full. Owner financing could land you in that situation! In my opinion, true owner financing should only be offered by sellers who own their property with no mortgages on the property.
If you are a buyer, then remember the old saying "buyer beware"? Let's say you decide to "purchase" a home with owner financing. The owner has a mortage n the property. What if they get into financial difficulty and use your payment for other purposes and do not pay the mortgage payment? Where does that leave this buyer when the lender is ready to foreclose?
Buying or selling real estate is complicated and you definitely need the assistance of a professional to help you manuever through the potential landmines out there. Before you jump into an owner finance situation obtain advice from appropriate professionals such as a real estate licensee, a real estate attorney, and possibly an accountant.
Avoid those potential landmines and protect the biggest investment you may ever make!
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