Seller financing is making a big comeback in recent years, and there’s a lot of reasons for it. But did you know that you can seller finance with an existing mortgage in place? If you need to sell your house fast in Greenville NC, or you just want to make extra money using the equity in your home, completing seller finance with an existing mortgage on the property can be an option! It can even be used to stop foreclosure! Here are some things you need to know before taking that leap.
Work Only With Professionals
In order to seller finance your home, there are specific things that need to be done and they have to be done correctly.
Make sure that you’re working with a professional home buyer like Pitt Home Buyers. It takes a great deal of understanding in order to complete this type of sale, so never enter into a similar transaction with an “average Joe”.
We have plenty of articles that will arm you with questions you can ask a Local Home Buyer.
Make a list of all of the questions you have for them. As they’re answered, make note of what the answers are and add any new questions that come up to the list.
When I’m writing articles like this one, I do the exact same thing and it works like magic. My thoughts stay organized and I’m more deliberate in my writing. You can do the same
Your Mortgage Payments Are Covered
When you’re selling your house that has an existing mortgage, it’s important to know that you will no longer be the owner of the property but the loan will stay in your name.
While this may not seem ideal, it’s a great way to sell your house in order to stop foreclosure or sell it fast if you have to relocate.
The home buyer will continue to make the payments and keep your loan up to date.
After closing, the mortgage bills will be redirected and go directly to the home buyer who will be paying them from that point forward.
If you receive any other mailings regarding your loan, you will need to forward those to your home buyer so they can perform any tasks the bank is requiring and keep them on file.
You Receive Checks
If you were going to receive proceeds at closing for the sale of your house, instead an attorney is going to write up a promissory note for that amount. This is commonplace when you seller finance your home.
From the date of closing onward, your home buyer will be making payments towards that loan at the frequency (monthly, quarterly, etc) you originally agreed upon with your lender.
What’s exciting is that you can even earn interest off of your money!
A lot of people who are retired, or planning to retire, use seller financing as a way to guarantee income during that time.
The payments are consistent and reliable, especially since the Local Home Buyer who’s purchasing your house is using it as a rental property.
Equity markets are volatile right now and banks are paying <1% interest on savings deposits.
If you’re like my grandparents, you’ve lost close to 30% of value in your mutual funds or other investments in the recent downturn. It has come back as of this writing, but the underlying economics of the world tell a foreboding story. Don’t be surprised if there’s a repeat.
Financing your house can provide income security and be a true win-win-win situation.
Your Stress Diminishes
Selling your house can be a really challenging endeavor.
When you seller finance with a mortgage in place you’re going to take that stress right off of your shoulders because now you don’t have to make any mortgage payments and you’re even making money! How awesome is that?!
Of course, there’s always going to be something you need to learn, which may take a little brainpower.
When you work with a Local Home Buyer like Pitt Home Buyers, though, you’re able to get your questions answered and all of your concerns addressed.
A true professional will educate you on the process and not just lead you along.
It’s also important that you ask questions as they arise and always ask “why?” Don’t feel like you’re inconveniencing them with your questions. Your questions will open up a constructive conversation which will make you both feel more at ease.
There are a lot of options available to you and this is only on. But when you seller finance your property, you take what used to be a burden and turn it into an income-producing asset!
Call Pitt Home Buyers Today to learn more about how you can seller finance with an existing mortgage in place!Call Us Today!