Let suppose you own a $150,000 house, and you’ve got $110,000 left on the mortgage. If you sell it the regular way, you’ll wind up with $40,000 in cash. (You’ll get $150k from the buyer — part down payment, part mortgage from the buyer’s bank — of which $110k will go towards paying off your existing mortgage, and you’ll get the rest.) You could do a lot with that $40k: make a down payment on an even bigger house, travel the world, add it to your nest egg to retire, go to Vegas, etc.

But let’s say you owner-finance the sale instead, in which you get a down payment from the buyer, and let him/her make payments to you for 15-30 years. First off, you won’t be getting as much money up front — $15k on a 10% down payment, or $30k on a 20% down payment. Second, you’d have to pay off the existing mortgage before you could sell it! So you’d have to pay your bank $110k in cash, before you get the measley $30k down payment. Most people don’t have that kind of cash laying around.

But what if you own your house free and clear? That is, what if you’ve already paid off your 15- or 30-year mortgage so you didn’t have to worry about coughing up a lot of money to pay off the loan all at once? Then in that case, you don’t get your $150k all at once — you have to accept the small payments that trickle in month after month from the buyer.

Why on earth would you do this? Well, probably, you wouldn’t, unless you’re really desperate to sell for some reason, or you don’t understand what a rotten deal it is for you, or you’re unusually generous.

So you see, it’s usually not in the seller’s interest to finance the house for you, which is why you’ll rarely find houses that are owner-financed.

source: michaelbluejay dot com

You can contact: Hard Hitter Funding Company pays fast for owner-financed mortgages. Professional service/ Fast closing. Phone 252-522-4563.