Seller finaning

[David Bohner]

I am selling a house by owner in Salida, Colorado and have offered seller financing. I have never done it before. How do I go about it? Would I go through a real estate attorney or a title company or both and what roles do they play? Also are there closing cost involved with it? Any input helps. Thanks

[Chris Eaker]

@David Bohner

You should get a title company involved. They will need to draft the deed, the mortgage or deed of trust, and the note. There will be costs involved. They can do the closing. Since you're the bank, be sure to check the buyers' credit and ask them to pay a reasonable interest rate.

Once you close, will you be servicing the loan yourself or do you plan to pay a loan servicing company? If I were you, I'd hire a loan servicing company. They will take care of sending out bills, processing payments and late fees, and crediting you.