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The Power of Oregon Seller Financing
While most Oregon homebuyers use traditional lenders like banks, mortgage brokers or credit unions, there are solid reasons (and a very helpful alternative) for purchasing a home without them. Buyers avoid traditional lenders for a variety of factors and when they do, one mechanism they frequently turn to is known in our area as seller financing.
http://certifiedrealty.com/wp-content/uploads/2016/07/The-Power-of-Oregon-Seller-Financing.mp3
Listen to the audio podcast of this presentation by clicking here or on the ‘play button’ above.
What Is Seller Financing?
Also called owner financing, seller terms, owner carry, seller carryback, or seller carry, seller financing allows a homebuyer to purchase a property by making an initial down payment, then making direct payments to the seller. While Oregon law has rules in place especially to regulate large-scale property sellers who handle a significant amount of seller-financed transactions (notably commercial firms, such as finance companies), the process still remains relatively simple for Oregon home buyers and sellers who enter into a home sale without using a traditional lender.
The Basics
A key factor that helps to make seller financing an option is if a homeseller has either no loan, or a very small loan remaining on the property to be sold. Having little or no loan on the home being sold means that more of the buyer’s down payment will go to the seller, and not diverted to the lender of a seller’s existing home loan. Most home loans now have what’s called a ‘due on sale’ clause, which means a seller’s home loan must first be paid off upon the sale of a property. The single factor of having no or little loan balance on a property is often the single most limiting condition in determining if seller financing is an option. If the property has either no loan, or only a small loan remaining, this can really open the door to seller financing.
Playing the Bank
One other factor for prospective sellers to consider when thinking about seller financing is if they’re okay with ‘taking payments’ instead of receiving a ‘lump sum.’ By ‘playing the bank,’ sellers receive payments from the buyer as they are made, not all at once. Some sellers greatly prefer the income
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By Realtor Roy Widing
5
22 ratings
While most Oregon homebuyers use traditional lenders like banks, mortgage brokers or credit unions, there are solid reasons (and a very helpful alternative) for purchasing a home without them. Buyers avoid traditional lenders for a variety of factors and when they do, one mechanism they frequently turn to is known in our area as seller financing.
http://certifiedrealty.com/wp-content/uploads/2016/07/The-Power-of-Oregon-Seller-Financing.mp3
Listen to the audio podcast of this presentation by clicking here or on the ‘play button’ above.
What Is Seller Financing?
Also called owner financing, seller terms, owner carry, seller carryback, or seller carry, seller financing allows a homebuyer to purchase a property by making an initial down payment, then making direct payments to the seller. While Oregon law has rules in place especially to regulate large-scale property sellers who handle a significant amount of seller-financed transactions (notably commercial firms, such as finance companies), the process still remains relatively simple for Oregon home buyers and sellers who enter into a home sale without using a traditional lender.
The Basics
A key factor that helps to make seller financing an option is if a homeseller has either no loan, or a very small loan remaining on the property to be sold. Having little or no loan on the home being sold means that more of the buyer’s down payment will go to the seller, and not diverted to the lender of a seller’s existing home loan. Most home loans now have what’s called a ‘due on sale’ clause, which means a seller’s home loan must first be paid off upon the sale of a property. The single factor of having no or little loan balance on a property is often the single most limiting condition in determining if seller financing is an option. If the property has either no loan, or only a small loan remaining, this can really open the door to seller financing.
Playing the Bank
One other factor for prospective sellers to consider when thinking about seller financing is if they’re okay with ‘taking payments’ instead of receiving a ‘lump sum.’ By ‘playing the bank,’ sellers receive payments from the buyer as they are made, not all at once. Some sellers greatly prefer the income