Current financial market conditions has rejuvinated an age old form of financing for current home sales. Seller Financing. There are many people today, trying to sell their home, hitting major road blocks with Buyer's that are good people, able to make the payments, but cannot, for one reason or another, qualify for a bank loan right now. Savvy Sellers should be offering seller financing and getting creative to get the deal done.
Buying a house and having the Seller keep his existing loan in place until the economy turns around and the Buyer can better qualify to cash out the Seller is a great option. Especially if the Seller can afford and qualify to go out and get another home loan without paying off their current mortgage.
I'm not a Real Estate trainer, but with a little coaching and a willing Seller and Buyer, it can be done and quickly. Far less closing hassles dealing with current conventional lending requirements. If you have gotten a mortgage lately, you have to practically get the Pope to sign in blood before they will loan you the money.
Buyers...talk to FSBO Sellers about carrying back part of the financing or possibly a major portion of it. Sellers...consider offering creative options to allow somewhat marginal Buyers the chance to own your home with your help. There are payoffs if it is setup right.
If you have any thoughts, please feel free to comment or share your experiences.
agent for Realty Resource of KC