Real Estate – Owner Finance Options
Sellers are seeing their properties on the market longer and their asking prices getting smaller. Meanwhile the Buyers are having a harder time qualifying for loans, since mortgage companies are tightening their lending practices. Some Buyers and Sellers are resorting to creative alternatives. Owner financing is one of those options.
Basically there are three types of owner financing:
Promissory Note & Deed of Trust: Buyer signs a note to Seller, and a deed of trust secures the note.
Lease with Purchase Option: Buyer rents the property and can Buy it during the lease term for an agreed price. Part of the rent may or may not apply to the purchase price.
Contract for Deed: Seller enters into a contract with Buyer to deliver the deed to the property once the Buyer has paid the property completely. This can have disastrous results if the letter of the law (which changed recently) is not followed.
For more information on owner financing look for the next DickersonLaw Newsletter coming to your inbox soon or access a copy here or read my book The Road Map to Rich, available at www.theroadmaptorich.com
Add comment July 31st, 2008
