Seller financing is seeing an increase driven by the current real estate market condition across the nation.
“A report released Monday August 27, 2012 from John Burns Real Estate Consulting revealed that the “real” homeownership rate—measured as the percentage of households that own a home and are not seriously delinquent on their mortgage—has fallen to 62.1 percent, the lowest level in almost half a century.
The firm said that the Census Bureau’s 65.5 percent homeownership estimate was a vast overestimate, as it includes 3.8 million homeowners who are 90 or more days delinquent. “1
These “home owners are really just renters in waiting”2 said Robert Barringer of DSNews. The delinquent rate could be attributed to work place downsizing, or the effects of Adjustable Rate Mortgages that are beginning to readjust after the initial low introductory interest rate.
In the latter case many of these delinquent home owners are still gainfully employed but cannot keep up with the increase in their payments. There has been a lot of news lately about government programs that are designed to help these types of owners but the fact remains that these programs have less than a stellar record in accomplishing their objective.
This opens up an opportunity to current home sellers. Although counterintuitive, this really will create more buyers for your property. When these homeowners are no longer able to stay in their home, they will obviously need a place to live. If you are in a position to offer these people financing on the home you are selling, then they are more likely to be interested in your property.
Properly structured and adequately secured seller financed properties not only sell faster but in general will bring full fair market value offers from buyers. This scenario can be a win-win for a home buyer and seller alike. Consult a professional real estate attorney experienced with owner financing so that he/she can explain the process, pros and cons and necessary information needed to qualify your buyers.
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If you currently own a real estate note and are in need of immediate cash, we would like an opportunity to bid on and possibly BUY YOUR NOTE! With over 20 years experience in the private note industry, our experienced staff is available to provide you with a quick quote and help make it easy for you to get the most for your note. Visit us today at www.notebuyingusa.com or contact us at 1-877-399-1211. If you are considering offering owner financing when you sell your property, please click here to receive your free copy of “10 Critical Steps to Creating a Sellable Note”.
This information is intended to be used as a general guide. It is not intended to constitute legal advice and is not a substitute for the advice of an attorney. While every effort has been taken to present the information accurately, this document may not be infallible. No warranty is made that these materials are current, complete, accurate, or suitable for any particular purpose. You should seek advice from your attorney before proceeding with any real estate transaction.
Source(s):
1. Report: Homeownership at Lowest Rate in Nearly 50 years, 08/29/12, DSNews.com, http://www.dsnews.com/articles/report-homeownership-at-lowest-rate-in-nearly-50-years-2012-08-29, Date Retrieved (08/29/12)
2. Report: Homeownership at Lowest Rate in Nearly 50 years, 08/29/12, Robert Barringer, DSNews.com, http://www.dsnews.com/articles/report-homeownership-at-lowest-rate-in-nearly-50-years-2012-08-29, Date Retrieved (08/29/12)
