What are the drawbacks to owner financing?

[Jason Click]

I may be transferring with my job and may need to get rid of my house. It's worth about $160K so that's almost $10K in commissions to a realtor. I'd like to keep all of the equity so I want to sell it myself. The market where I live is pretty slow so I figured a good selling point may be to offer owner financing. What are the drawbacks to owner financing for the auctual owner of the property (me)?

[Frank Adams]

Is your sale going to trigger a due on sale clause?

How much equity in the house?

How much gain can you put in your pocket tax-free?

If they quit paying you the following questions become relavent:

Is NC a "trust-deed", state or a judicial foreclosure state?

How much is it likely you cost you to get it back, in either case?

How long wil it take you to get it back?

How much does it cost you to miss that many payments?

There's nothing wrong with doing a FSBO, no special talent needed and you can learn it in a few weeks, after all most Realtors did! Not knocking the few that are really good, just the many that are below average.

I've done about 30 seller finance deals, in the old days on "wraps" on FHA and VA fully assumable loans. I got one or two of those back! Most of them though have been straight up seller financing of 95%+ of the sales price. I know going in that most of the people responding to my ads are going to be those with bruised and battered credit.

I've done about 5 foreclosures, (trustee's sales as TX is a trust deed state) at a cost of between $1K and $3K apiece. However, this isn't a "part time" thing with me, it's what I do for a living. I don't lose sleep over late and missed payments. I just collect my late fees and call the attorney when the problem gets too big, ie; 30 days behind and no serious effort to rectify.

Think it over long and hard before you start.

all cash