Selling with Owner Financing

[Inderpal Chadha]

Hello

This question is about structuring a specific deal. We have a house in Mt.Baker Seattle area which we have remodeled and is worth $650,000. We have a buyer whose credit has been damaged by the bank and they have won the litigation but credit will still take 5 years to fix. Both husband and wife have combined income of $400,000 a year and are willing to pay 20% down and need owner financing for next five years.  My partner is not willing to carry the mortgage for his personal reasons. I would appreciate if any one can point us to how we can help the buyer to get financing and help us sell the property.

Thanks

Inder

[Dan Butler]

how did the buyer and up in the pickle they are in?

Remember that you yourself should stay in control and some of the new laws negate you from  selling the home with owner financing unless of course you have  yourself lived in the property.

I've been doing this for years  and I have found executing and utilizing options  works very well.

Properly structured,  you do give your promise  that you will sell. However, you do not have to relinquish title. You would be executing a unilateral contract. 

So should they not be able to perform you would not have to foreclose if your transaction structured correctly. Quite often. If this is the first option you've done you will find that it will be beneficial if this is something you will do again.

if you have lived in the property  and are selling the property you may not have to have a licensed loan originator based on the number of transactions that you've done.

The laws are favorable in Washington. However there are some that you should know and read.

If you have existing debt service that debt service can be a hindrance to this transaction.

Dan