We Buy Houses in Hialeah and pay cash for houses. What is owner financing? This is a type of sale where the owner finances their own buyer or becomes the bank. The owner will usually have similar terms to a bank for a buyer to qualify. Loan providers always expect a downpayment before they give out a loan. If you don’t make your payments on time, they can also foreclose on your property. This is also a great way for a buyer to buy a home that may not have the best financial background on paper since the owners might be a little less stringent. Check out these 4 tips for selling your house with owner financing in Hialeah.
Tip #1: Check Buyer Qualifications in Hialeah
You will not have to wait long for an offer if you are willing to provide owner financing; however, you do have to take into consideration WHY they aren’t using a traditional bank to obtain the financing. It’s important to do your research on potential buyers to make sure you are making a wise investment. Make sure you require your potential buyer to fill out a loan application and investigate all the information provided, such as current employment and references. Also, conduct a background check and run a credit report. Do everything a traditional bank would do.
Tip #2: Make it Legal in Florida
When you find your buyer, make sure you draw up a legal contract with all your agreed upon terms. Be sure to include all relevant details in your loan agreement, such as the loan term, down payment, interest rate, and payment schedule. You will also need to have a promissory note recorded in the county records of the property. If the borrower defaults on the loan, be sure to include provisions for what will happen next. This is how you prove that you are the mortgagee and you can foreclose if they default. It is extremely important that all of the words and phrases are legal, and that you do not forget an important part of the contract. A small mistake in the beginning might cost you a lot in the long run.
Tip #3: Owner Perks in Hialeah, Florida
It may seem like owner financing is always in the buyer’s best interest, but there are benefits for the seller, too! When you owner finance a property, you collect interest on the loan. This means that, in many cases, you can make more money from selling a property through owner financing than if you took the lump sum purchase price. You may be able to collect even more interest if you allow for a longer loan period. Also, if you change your mind after a while and do not want to continue to hold the loan, there are investors standing by ready to take over your note. Remember that this will depend entirely on the creditworthiness of the buyer and whether they have been making on-time payments or not.
Tip #4: Collect like a Pro in Florida
A very important part of financing your own sale is the bookkeeping or “servicing” of your own loan. You need to keep track of all of the payments and when they were made, the real estate tax, insurance, any homeowners association fees, and anything else to do with the note. Hiring a 3rd party to take care of the loan servicing will save you a lot of time and possible errors in the future. There are a few benefits to offering multiple forms of payment. For one, it makes it more likely that your buyer will be able to make the payments on time. Secondly, it decreases the chances of default. And lastly, it makes things more convenient for your buyer overall. Having a professional note servicer will take a lot of liabilities off your hands and provide you with more free time to focus on what you enjoy.
Sell My House In Hialeah, FL
If you’re wondering how to sell your house in Hialeah by owner financing, we can help. As professional Florida home buyers, we might be able to help you out with some advice, or even work out an owner financing arrangement where we purchase your house from you.Talk to us at 205-259-7529 or by clicking the link below to fill out the form. We are more than happy to answer all of your questions and help you facilitate the process!
