Owner Financing Risks

[Tonya Sanders]

Hello. My wife and I are just starting out in real estate, and we're in a pickle with our first property. We found someone who is willing to buy if we owner finance, but we're hesitant. If all comes back well with background/credit checks, and if we could set favorable terms, is there any real risk with owner financing that we cannot see?  (this is in oklahoma) For instance, is there a type of bankruptcy that the buyer could file in which he would get the house?  If he defaulted on the loan, and we got the house back, that would be fine. It would be a headache of course, but we'll ask for a sizeable down payment and interest rate to protect our time. I'm less interested in those scenarios.  Mostly we just want to assure that there's no way we can lose the house or a portion of the house for any reason until the buyer pays us in full. 

Thank you! 

Andy