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Posts Tagged ‘Comeback’

If you are selling your home and your existing mortgage is already paid off, and you don’t require the proceeds of the sale all at once, then you may consider financing the sale yourself. Unlike when investing in a fluctuating market, holding the loan on a mortgage assures you of a predetermined interest rate. Now that banks have started tightening their lending criteria, some prospective homeowners are finding it more difficult to obtaining mortgages and seller financing solves the problem. In addition to the investment benefit, homeowners find that offering to take back the mortgage gives them a sellers advantage in this tight buyers market. Generally, the seller and the buyer come up with a mutually agreeable arrangement that outlines the payment, deposit and payment schedule, without the benefit of bank involvement. Instead of financing the entire mortgage amount, the seller may consider taking a loan on a portion of it. Often times, people want to buy, but the banks Read More