Seller Financing Scenario - Need Advice

[Darren Day]

Hi all,

My mother is selling her house to her other son in Hendricks County Indiana (Just SW of Indy).  I thought to myself, how can she give a good deal and still make good money?  I thought seller financing might be the answer in this situation.  Please give me your thoughts on this scenario and suggestions on how you'd structure the deal.  Since she has a mortgage, can she utilize seller financing? 

She currently owes 138K on the mortgage.

The AS IS value is 230K

The ARV value is roughly 260K

She is 65 years old.

Your response is greatly appreciated!

[Anthony Dooley]

@Darren Day She can, but she is not supposed to sell the property without paying off her mortgage. There is no benefit to her for financing unless she will make a lot of interest, but that will take years. She will also make interest if she takes the equity at closing and invests it in something else. I would have him get financing on his own because if he doesn't pay, is she willing to foreclose and kick him out? It happens.