Seller Financing when user owes on 1st TD - Posted by Anthony

Posted by Ben (FL) on August 22, 2001 at 13:21:28:

Trying to convince someone of something they are unfamiliar with is tough - You might try putting togeth a little graph or table that shows the other realtors how much more money they’d make if they took their commission in installments with interest. Appeal to their greed. “Oh sure, it’s $2,000 now, but at 10% over 3 years its $2,322 whiel you collect $64 per month in payments.” Doesn’t sound like much, until you do that with 10 or 20 listings. They say, “Well what if they don’t pay,” then you say, “Fine. Foreclose the house, and sell it again, and keep ALL the profit.”

The confused mind says “NO.” When the confused mind hears, “Cash” it says, “Now hold on a second. Say that again.”

Seller Financing when user owes on 1st TD - Posted by Anthony

Posted by Anthony on August 21, 2001 at 12:57:29:

I have seen post regarding seller financing with little or no money down and I believe that it will work but, how can you do this with a Realtor listed property and/or the owner still has a balance on the 1st TD? How does the commission and the 1st get paid off if the buyer is not putting anything down and making interest only payments for a number of years? Please explain, I’m looking to buy my first home in Long Beach this way very soon and many of the properties are listed and the owners still owe on their 1st.

RE: Seller Financing - Posted by Ben (FL)

Posted by Ben (FL) on August 21, 2001 at 16:08:40:

As you’ve described, it’s very unlikely that the Realtor will encourage the seller to go for this deal. So far, there’s no way for them to get paid, unless they’re willing to wait a number ofyears, until you get refinanced. You can always ask if they will take their commission in installments. In this case, there woudl then be the primary mortgage, the second that you are making interest-only payments on, and the third mortgage the realtor would have for their commission. You would have to offer a decent interest rate, and probably a balloon. It can’t hurt to ask. If they are tired of dealing with the property they may agree. Of course, then you may have a cashlow problem.

The only sucess I’vehad with Realtor-listed properties, so far, has been wither with junkers, or with a house with an existing mortgage of

Re: Seller Financing when user owes on 1st TD - Posted by Steve-Atl

Posted by Steve-Atl on August 21, 2001 at 14:08:26:

Please search the archives for buying subject to existing financing, and how to overcome the due on sale clause that exists in most mortgages. Buying this way on properties listed with realtors is a challenge because they don’t generally understand these techniques and will discourage their clients from accepting them.

Its much better to deal directly with a motivated seller to accomplish this. Look for motivated sellers first, then determine if it is a house you would like.

Good Luck!

Re: RE: Seller Financing - Posted by Anthony Roche

Posted by Anthony Roche on August 22, 2001 at 12:26:23:

Thanks for the suggestion, I’m an agent in California and I really want to try one of these transactions because I’ll be able to assist more of my cleints that have the income and can afford the interest only payments but the lender will not qualify them for the amount of house they would like to get. But the other agents seem to be the “weakest link” in trying this.
Thanks again,

Re: Seller Financing when user owes on 1st TD - Posted by Anthony Roche

Posted by Anthony Roche on August 22, 2001 at 12:18:33:

Thanks for the advise and you’re right about the agents. When ever I talk to them about this type of transaction you’d think I just said something in a foreign language. I am an agent and my broker understands this type of transaction and has encouraged me to try it. Thanks again.