Seller Finance

[Elizabeth F.]

Can anyone explain to be why and what are the benefits an owner will finance to a a buyer. My understanding is: if the terms are right. But I do not not really understand that. can someone help me :roll:

[Bill Gulley]

Sellers defer taxable gains on the sale and pay on the profits as they are received. This is the biggest seller advantage. Having an annuity income and allowing their "equity" dollars to earn a higher rate than they could usually get if funds had been received in a cash sale, especially after taxes.

Saying that being able to foreclose sends you down the wrong road, it's not an advantage to put someone in a seller financed deal to set them up to fail and get the property back.....now, you'll have big problems with that thinking. Investigate the SAFE Act and the CFPA.

A buyer gets into a loan without paying points, loan fees and other loan costs.

A buyer, unless they are a savy investor, should always get an appraisal or at the very least a BPO, for several reasons, but primarily to know that they are not paying too much or a premium because financing was provided and that the scheduled payments will put them in a LTV area to refinance and meet the loan obligation.

There is alot of information here on BP concerning seller financing. If interested, I suggest you study many of the posts on the subject. Good luck....