Sell Real Estate quickly with Owner Financing (Seller Financing)

There are several reasons to sell your real estate with seller financing

• A quicker sale
• A higher price
• Lowered loan costs for the buyer
• The mortgage you receive should be a good investment
• Deferred taxes if an investment property

Before you can offer owner financing, you probably need to own the property free and clear of mortgages. Some mortgages can be assumed by a buyer, but most cannot. If you do not own the property free and clear you can use a form of seller financing known as a lease option. This enables you to get someone into the house quickly but you still hold title and the due on sale clause is not triggered. There is information on lease options on this site.

Remember that if someone assumes your mortgage, you are usually still liable on it if they don’t pay. (Unless you get a release from the lender called ‘novation’).

Be wary of letting someone buy your property ‘subject to’ the existing mortgage. If they do this, they are not guaranteeing that they will make the payments And if they don’t it could come back to haunt you years later.

The first question is, “What is your home worth”? You can order an appraisal from a local licensed appraiser for about $300.

Typical Seller Financed Mortgage