Sell Your Home Fast – No Repairs, No Agents, No Fees
We help homeowners get a fair cash offer even if you’re facing foreclosure, low equity, or costly repairs
Explore Our Comprehensive Real Estate Solution Services
Explore customized solutions tailored to amplify your needs, leveraging expert insights and creative terms for unmatched and needed problem solving conclusions.
FILL OUT THE FORM BELOW FOR YOUR CUSTOM SOLUTION
By checking this box, I consent to receive transactional messages related to my account, orders, or services I have requested. These messages may include appointment reminders, order confirmations, and account notifications among others. Message frequency may vary. Message & Data rates may apply.Reply HELP for help or STOP to opt-out.
FAQs
Answers to Questions Asked
What is Seller Finance?
In a nutshell, a seller finance sale is an agreement in which the seller agrees to sell the property to the buyer by structuring a loan that the buyer will pay off over time. This agreement is very similar to getting a loan from a mortgage lender, except the seller and buyer can create and negotiate their own terms including price, monthly payment, loan length, and interest rates among other possible terms. There are no rich and wealthy bank owners involved in the transaction making money off of the not-so-wealthy and therefore the buyer, seller and property do not need to qualify for traditional lending requirements.
Is "Subject To" legal?
Yes, Fill-able HUD-1 This is a standard form that title/escrow companies
and attorneys use to build settlement statements. Please note lines 203
and 503. CFR-2012-title24-vol5-part3500-appA.pdf (govinfo.gov) This link
are the instructions to fill out the HUD1. Note this is a Code of Federal
Regulation (CFR) document. Page 396, second paragraph states: "Line
203 is used for cases in which the Borrower is assuming or taking title
subject to an existing loan or lien on the property." Would the federal
government put this in the Code of Federal Regulation if it wasn’t legal?
Who is responsible if there are repairs or maintenance needed on the property?
The seller would not be responsible for any repairs or maintenance on the
property after the deed is transferred. The person responsible for any
repairs or maintenance would be whoever is on the deed of the property.
Since the seller’s name would only remain on the mortgage and the deed
would change into the buyers name, then the buyer would be responsible
for all of the repairs and maintenance.
Can I Seller Finance if I have a Mortgage?
Absolutely!! One option is that the buyer can provide a down payment large enough to pay off the seller’s existing mortgage. Another option is allowing the buyer to take over the existing mortgage note payments (also known as “Subject to”). Mortgage note payment assumptions present additional benefits and risks similar to seller financing with the addition of credit repair or potential for increased credit scores.
What do Terms Typically Look Like?
There is not necessarily a ‘typical’ set of terms. If the seller is looking to make a good return, they may negotiate a higher purchase price. If the seller is looking for a fast return, they can negotiate a shorter term on the transaction or accept a cash offer. Alternatively, a buyer will often focus on negotiating a reasonable monthly payment.
How does “Subject-To” affect my credit?
Since the loan is left in the seller's name, when the on-time payments are
made, the seller’s credit score is beneficially affected. The on-time
payments to the lender gets reported back to the credit bureau and can
significantly help someone who is looking to improve their credit score and
can save the seller more money down the road to get their credit repaired