Hello Real Estate Partners – Here is my question:
Q: What is seller financing?
Thanks, Sam L, Newmarket NH
A: Hi Sam,
Seller financing is a loan provided by the seller of a property or business to the purchaser. When used in the context of residential real estate, it is also called “owner financing” where the owner of the property becomes the “bank” or “Lender”. The transfer is done through a title company, and they can draft all the documentation you’ll need. At times, a 3rd party escrow company is used so the buyer makes payments to that company, and they in turn pay the seller on a monthly basis. This keeps the transaction businesslike and allows sellers to deal directly with a 3rd party if any payment issues arise.
By Noli Peterson, Chief Technology Officer at Unlocked Home Project, and contributing ‘Expert’ at Real Estate Partners.
Email: [email protected]
