Distinctive Financing Options for Selling Home- II
Selling home owner financing, buying home before selling, buying a home
check list
Yet another way in which creative financing can be done is by the �lease
to own� deal process. In this case the buyer acts as tenant for particular
period may be one to three years with a part of the rent being paid away
in an exclusive account that gathers the amount for the down payment.
In such a situation the buyer can finally choose not to buy but then he
will loose the built up cash in the process. A buyer has to buy in the
end of a lease purchase. So that makes these deals potentially risk prone.
According to Janice B. Leis, a Prudential Realtor, lease purchases are
rather questionable as the buyer may still stroll with the seller as the
owner. In fact in such dealings none of the parties tend to hire a real
estate attorney thereby leading to a financial dispute than a real and
successful deal in the end. So sellers should rather avoid these.
Another creative financing method that may be mentioned in this context
is that of the �seller financing route�. This can be done either the partial
way or the full way.
In case of partial financing, the seller opts to provide a part of the
money as �seller carrybacks� or second mortgages. In such cases the bank
will be paying 80% of the purchase price, the buyer gives 10% and the
seller gives the rest 10% of the total down payment.
On the other hand, for a full financing, the seller will play the part
of lender for the entire amount in owe minus the down payment. This is
the general arrangement in,
� Trust Deeds
� Land Contractors
� Notes
� Deeds of Trust
� Private Mortgages
But then before anything else you need to ask yourself whether you at
all want to be the lender or not. For if the buyer payments stop you can
be in trouble. In that case you will have to either follow the penalty
procedures or foreclosure actions, both of which will take a lot of time
and money.
