I have a property in Baton Rouge that has sat on the market for too long this year. I have a potential buyer interested in paying 10% ($25k on a $250k home) if I will finance the balance. I would hold title until payoff is 100% complete.

What do I need to know as far as potential problems with this deal? How do I contract to protect myself? Buyer is talking 5 to 10 year amortization. I'd like to get the booger off my finger but this doesn't quite get it. However, it gets me closer to "off my books".

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Posted by baldona

Florida

Member since Feb 2016

20538 posts

Posted on 12/4/17 at 5:27 pm to ynlvr

Why do they want seller financing? That's usually a huge red flag. If they have 10% and can pay it off in 10 years then they should be able to get a loan unless they have horrendous credit or something in which you don't want to be their lender.

Generally speaking the only reason to do seller financing is because you as the seller can set up great terms for yourself.

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Posted by LPTReb

Member since Jul 2016

469 posts

Posted on 12/4/17 at 8:45 pm to ynlvr

I had to do this after the market tanked and I couldn’t sell my house for over a year. They paid me fine until early this year. Then they just bailed. The house, which was a pretty nice house, was absolutely trashed. I had to put around $60k into it just to get it back to being a fairly nice house again, and I’m finally about to put it on the market. I’m now going to lose my arse on it. Just wait until you can actually sell it and be totally rid of it.

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Posted by bayou choupique

the banks of bayou choupique

Member since Oct 2014

1818 posts

Posted on 12/6/17 at 12:27 pm to ynlvr

I would not do it. Something is a red flag if they have 10% and can't obtain a traditional loan. Offer some incentives when you list your house if you want to look attractive to other buyers.

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