I have a house for sale that I am trying to get rid of. I have a buyer interested that wants to purchase it but do owner financing over a 6 year period. I dont want to hang on to it for that long and go through all the financing and stuff.

My question is, are there any businesses or banks that will take over and help me? like they will hold onto the title or buy it out, knowing they are going to get the interest that the buyer is planning on paying?

weird question I know but I figured someone, anyone, may can help.

12/30/2009 2:12:55 PM

is this even possible? i've never heard of anybody doing this

12/30/2009 3:40:48 PM

thank you

and I was just wondering if it was possible, not sure.

12/30/2009 3:43:24 PM

I work with a guy who does owner financing with a bunch of trailers he owns. Dude makes a killing because he owns the trailers outright and buyers pay him a monthly amount that is based on 30 yr loan with a fixed interest rate (10-15%+ because most of these buyers have horrible credit plus he makes them pay in cash). Many of them end up defaulting and he has to evict them, but he then spends a few thousand to fix the trailer back up and "resells" it.

He has ~30 trailers now because any income he gets from the trailer business he puts into a new investments for tax purposes. He buys old shitty trailers that are government owned/bank owned, etc. moves them to his land, fixes them up, and puts them back on the market. Worst part for him is dealing with shady people, but he hasn't had too much trouble.

Back to original thread topic, I have never heard of a bank doing what you are looking for.



[Edited on December 30, 2009 at 4:47 PM. Reason : fgjh]

12/30/2009 4:45:19 PM

Quote :

"Many of them end up defaulting and he has to evict them"

Bingo. A bank is not going to want to deal with this kind of risk. Oh, I'm sure you could find somebody out there who would, but, you'll be searching for awhile given the current lending conditions for traditional mortgages, nevermind this sort of situation where there are intermediaries involved. If your house was paid off in full, MAYBE this might be possible. However, I'd be surprised if that was the case. Private businesses may be willing to do this. Good luck though if you don't have an established relationship already.

http://ezinearticles.com/?How-Does-Owner-Financing-Really-Work?&id=686452
http://michaelbluejay.com/house/owner-financing.html

I know nothing of the buyer or your own situation, but I'd personally advise against this. There are few reasons why this would be a good idea, and several more why it doesn't seem like a good idea. Unless this is an investment property / house, don't.

12/30/2009 7:49:45 PM

I'm not a big finance guy, but his sounds risky.

12/31/2009 10:45:14 AM

are they willing to put ANY money down?

12/31/2009 9:03:43 PM

yes

12/31/2009 9:54:11 PM

Fuck you !

Happy New Year !

[Edited on December 31, 2009 at 10:17 PM. Reason : x]

12/31/2009 10:15:22 PM

yeah ... "hold the title" ... you are essentially asking the same question as "will a bank give them a loan"

This is the exact reason banks do loans ... and if a bank right now is not willing to touch them with a 10 foot pole, in many situations you shouldn't either.

I know a guy who has done owner financing though for people. You just have to manage it all yourself.

His twist is that he rents 12 trailer units in benson. Then he finds homes on bank auction or forclosure, and gets them for say 50k when they are "worth" 80-90k. Then he "sales" it to his past renters who always paid on time, helping them get into a home they "own" for less money than they are paying him in rent each month. He also requires them to file the 8k subsidy from the government, and they have to hand that over to him, as laid out in the contract to purchase. So, they pay 5% down, another 8k a few months later, and so his risk overall is alot lower than a regular banks would be. Essentially, after 7 years he would have made back his 50k investment, and not worry about whether they can pay or not at that point. Pretty sweet deal investment wise, but a lot of headaches too ...

1/1/2010 12:01:22 AM