Seller Financing May Help Sell Your Home

by Isaac Benmergui, Esq on February 15, 2013

Home2If you want to make your home more attractive to prospective buyers, you may want to consider seller financing. If you own the property free and clear of a mortgage, this may be a good way to make your home sell faster. In order to protect your interests; however, you should consult an experienced real estate attorney. “Sellers can be taken advantage of, if they don’t protect themselves when they offer to finance the buyer,” says real estate attorney Isaac Benmergui.

 

Seller Financing, a Buyer Attraction Strategy

Selling financing usually attracts a deeper pool of prospective buyers who may be simply going through a financial rough patch. One of the advantages of seller financing is the seller can charge a much higher interest rate on the loan than any financial institution would give, if the money was parked in the bank.

Just like a lender, as a seller you should do some basic due diligence, including: asking the buyer to fill out a loan application, performing a credit check and getting a down payment. The biggest risk in seller financing is the possibility of having to foreclose on the property.

To give yourself the best protection possible, hire a real estate attorney to prepare the promissory note and mortgage for you and make certain the closing company issues title insurance on the loan. There are many legal issues that must be covered in the mortgage documents that you may not be familiar with and which could cost you tens of thousands or more down the road.

Getting Legal Help

From preparation of promissory notes to representation at closing, the law offices of Isaac Benmergui help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

 

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