Buyers who cannot get a traditional mortgage may ask sellers to assume the role of lender. This non-traditional financing, known as "seller financing,” presents sellers with the tasks of checking the prospective buyer’s credit and job history, getting a substantial down payment, and setting the rate (possibly adjustable) with future fluctuations in mind. The buyer should sign a promissory note that is fully negotiable (transferrable to another party) and a deed of trust, which should be recorded in the land records office as a lien against the home. That way, if the buyer defaults, the seller/lender can foreclose and get the house back. A real estate agent’s knowledge and experience can be critical to ensuring that seller financing deals go smoothly.
CENTURY 21 SEXTON & DONOHUE hopes you found this topic to be both interesting and informative. We have experience dealing with a wide variety of financing options. Reach us today at (781) 665-6660 to learn how you will benefit from our real estate knowledge. The office is conveniently located at 29 Essex St., just across the street from Shaw’s. We are "A Team Effort”. We look forward to meeting you!
HINT: Sellers involved in financing the sale of their homes should obtain a closing protection letter from the title insurance underwriter of the lawyer conducting the closing.
CENTURY 21 Sexton & Donohue
