Question
I have a home that I am interested in selling and am looking at various ways to entice buyers in this tough market. One option told to me was owner financing the property. What are the pros and cons as a person that would be financing my property? Also, what would be the difference if I still have a small mortgage on my property? The property is in Pennsylvania.
I have a home that I am interested in selling and am looking at various ways to entice buyers in this tough market. One option told to me was owner financing the property. What are the pros and cons as a person that would be financing my property? Also, what would be the difference if I still have a small mortgage on my property? The property is in Pennsylvania.
Answer
Pros: you will have lots of buyers to choose from you can make a good profit you have the right to foreclose and take back the home if payments are not made as the promissory note states Cons: You will need to screen all of those buyers Profit is long term You will have to go through the legal process to foreclose if necessary This is in my state of Texas, you should find out what the rules are where you are. Many investors in my area have become quite wealthy with owner financing. One reason is that when the owner forecloses, they lose all equity in the home and the financier can then sell the property again, keeping the last person's equity. Not saying this is right or wrong, just a fact.
Pros: you will have lots of buyers to choose from you can make a good profit you have the right to foreclose and take back the home if payments are not made as the promissory note states Cons: You will need to screen all of those buyers Profit is long term You will have to go through the legal process to foreclose if necessary This is in my state of Texas, you should find out what the rules are where you are. Many investors in my area have become quite wealthy with owner financing. One reason is that when the owner forecloses, they lose all equity in the home and the financier can then sell the property again, keeping the last person's equity. Not saying this is right or wrong, just a fact.
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