Doing Owner Finance

[coolstuff41005 0]

I'm trying to help my parents. I have been trying to do a rent-to-own on their house for the last two months, but most of the people that are interested are asking me if I would do an owner finance. Has anybody done this? Please help. What do I need to do? What kind of contracts do I need?

 

I'll appreciate for any help.

[Mr Saint 0]

Coolstuff41005,

 

Other than the fact that the house is actually yours at signing, I would think that a LO would be more beneficial to the buyer than an owner finance. What kind of terms are you offering on the Rent to Own?

[MichaelC 160]

I'm not surprised to hear that your t/b prospects are inquiring about seller financing. This happens to me quite a bit. And why not? The thinking is you are a motivated seller, right? I mean, look at the terms you're offering! Of course, the t/b's don't know just how wise you are, so they ask for the moon.

Who gets the benefits of seller financing depends upon the terms. If they offer and you accept, say, $3K down at 5% with no balloon, I think you can see who wins. On the other hand, if you can get $15K down and 9%, now the scales are tipped in the seller's favor. Look at the big picture, coolstuff, and make a deliberate and informed decision. Don't hesitate to run the specifics by us here.

And remember this: if you do seller financing, and there is a problem with receiving your payments, you are not talking about a simple eviction as with a rent to own. It becomes a foreclosure, which will be more involved and expensive for your folks to right.

As for the necessary paperwork, call the customer service department of a local title company and explain what you're doing. They should be able to help you. They want your business.