Selling real estate in today's marketplace can be alittle more of a challenge. This is particularly in evidence as one considers that there are millions of homes for sale in every city as either for sale by owner or on the MLS. And where are all of the buyers?
Buyers are the precious commodity in real estate transactions in 2006 and what can be done to increase the pool of buyers for real estate homes and condos for sale? The answer may be found in owner financing. Owner financing
or seller held financing can come in a number of forms. One option is a seller held second mortgage and another option could be owner financing with a new first mortgage held by the seller. Let's look at each of these options in some real estate detail and see if we can't figure out what seller held finaning is really all about when it comes to real estate owner financed transactions.
A new first mortgage is traditionally originated by an institutional mortgage lender and this is typically done without the assistance of a seller of real estate. This is not to say that the seller would not be assistaing with paying seller's closing costs, but the seller can in fact, pay the buyer's closing costs on a real estate sale and this is called a seller concession for buyer's closing costs.
Secondly, there are other factors to consider when studying the relationship of a seller to a buyer when the seller is holding paper on a seller held second mortgage. The seller must have sufficient equity in a real estate property to consider a seller held second mortgage. This can be of great assistance to a buyer if the seller holds a second mortgage. there are many types of seller held second mortgages and this is not uncommon in the real estate marketplace of which we are currently experiencing.
In conclusion, the seller held second mortgage is not for everyone. There are certainly risks involved in a seller held second mortgage
and you should consult a qualified real estate attorney before becomming the mortgagee on such a financing type of owner held paper.Seller Financing