Seller Motivation – You Would Be Surprised

There are many reasons a Seller may be offering Owner Financing on a Property. They may own the property outright and the thought of getting a 5%-10% return on their investment is motivation. They may have enough equity in the property, and rather then refinance the home to get to that equity, they are able to take the Down Payment and do what they need to do. In some circumstances though the picture may not be as colorful. Often the Sellers of the home have been on the market for a substantial amount of time, and the the showings/inquiries have dried up completely. By offering Owner Financing, a Seller can spark new interest in the property and bring in a new niche of perspective buyers. One more reason a seller may offer Owner Financing, is because they are behind on mortgage payments. When using owner financing the seller often can forgo excessive closing costs and use the down payment bring the underlying mortgage current, thus saving their credit and possibly a large loss in equity. If this is the case, and the seller is using the money to bring the mortgage current, be sure to have the statement from the underlying mortgage provider showing the back payments were made and the mortgage was brought current. Escrow companies will provide this information at closing.