Q & A Saturday – What are the Different Types of Seller Financing?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What are the Different Types of Seller Financing?

Guy Confused about Seller Financing - Massachusetts and New Hampshire Real Estate

In this video Shaun gives a high level overview of all the various types of seller financing.

 

Some of the main points covered in this video are:

1)      What is Seller Financing

2)      The two main questions to define what type of financing is appropriate

3)      Types when Seller holds the Deed

4)      Types when Deed transfers immediately

5)      Types when there is existing financing on the property

6)      More detail  we have discussed in previous articles/videos

 

Seller Financing, or selling on terms, is a very extensive topic.  However it can be broken down to a couple of basic questions with pretty much everything else being an offshoot of one of these basic situations.  The first big question is will the seller transfer the deed at the time of the agreement?  If not you are talking about some kind of Lease Option or Installment Sale (As it is usually called in MA, different places have other names like Contract For Deed or Land Contracts).  If the deed does transfer with an immediate sale the 2nd question is if there is existing financing on the property.  If not then that is the best situation as it will just be a situation where the two parties can decide on any terms that work out best for both sides without having to consider any 3rd party claims to the property.  If there is financing that does not make it impossible to do Seller Financing but it adds another level of consideration that has to be worked with.  The simplest situation is a Subject Too financed deal where the buyer agrees to by the house for the same amount that is still owed on the property and just takes over the payments on the mortgage.  In the scenario where the seller has additional equity that they will finance the property can be bought Subject Too then the seller can take a 2nd mortgage for their equity or a new note can be created for a Wrap Mortgage or similar instrument.  There are advantages and disadvantages to each scenario.  Once you establish the basic path to follow there is pretty much infinite ways to setup the deal so it works out best for both the buyer and the seller.  Please see the resources below for much more detail on most of these topics.

 

Do you want to sell a house with Seller Financing?  Do you need to sell a house in Massachusetts or New Hampshire?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Resources mentioned in the video and some other useful resources and good articles:

–          Our Video on Selling a House with Seller Financing

–          Our Video on Selling a House with Subject Too Financing

–          Our Video on The Due On Sale Clause

–          Our Video on Selling a House with a Wrap Mortgage

–          Our Video on Selling a House with a Lease Option

–          Guest post on 3 Reason to Sell with a Lease Option

–          All our articles/videos on Financing and Lease Options

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

(Image Credit: Confused Guy via cliparts.co)

 

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