If the sellers payment is going to be more than the payment on the real estate contract due to the amount financed or the REC having a lower interest rate then that of the senior lein, the difference can be held in escrow and distributed on a monthly basis. In addition, the Continue Reading

The REC (or mortgage or deed of trust) between the seller and the purchaser requires the purchaser to maintain hazard insurance for the benefit of the seller. The purchaser can satisfy this requirement by obtaining a homeowner’s policy, and naming the seller in the policy Continue Reading

He is absolutely correct. You (the buyer) need to have representation that is knowledgeable with  Real Estate Contracts. We at ABQ-OwnerFinancing.com are dedicated Buyer Brokers with finance backgrounds in addition to being Licensed Realtors. When using a Real Estate Continue Reading

The following acts or omissions of the buyer are declared by the standard RANM form to be events of default, for which the seller may pursue his remedies: · failure to make payments on the debt to the seller as required by the contract; · failure to make payments on an Continue Reading

When you make payments on a Real Estate Contract based on a schedule, such as a 30 year amortization, a portion of your payment will go toward principal and a portion toward interest. This is known as a P&I payment. In addition to your P&I payment, most times  you Continue Reading

When you purchase on a Real Estate Contract, it is important to understand that the Contract that the seller is holding is an entirely free standing note with its own terms and conditions. When you make a payment on this note a portion of your payment goes to principal and Continue Reading

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 Continue Reading

When you are negotiating the purchase price of the home that you are going to have the owner finance, it is important to consider what interest rate you are going to pay the seller for holding the note. Many times there is already a floor built into the interest rate, due to Continue Reading

The role of a sound Escrow Co. in owner financing is of the utmost importance. The escrow company will take in the payments that you make on the real estate contract and disburse the funds according to the contract. Why do you make your payments to the escrow co., and not Continue Reading

A portion of the down payment that the seller is requesting can be in the form of a Balloon Payment. This type of payment will require additional principal payments be made at regularly scheduled intervals. Such as $1000.00 every 3 months for 1 year, or $4000.00 in total. An Continue Reading