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Seller financing ought to be at 8% rate minimum 1st trust deed with 30% down and real bank appraisal. Rate as second should be 12 - 18% If borrower is a risk rate ought to be higher with less than 10 year paid in full term. Have an attorney /and or Realtor review all your contracts / documents and pay them. I would not want my Mom trying to collect on a note or foreclosing on someone. Pay a servicing agent to collect.
As Tony and Suzanne Marriott, Associate Brokers might answer: parked and reading.
Tony and Suzanne Marri...
I'll defer to a lender's opinion on this
I would advice them to consult a lender.
At current rates, why would a seller hold paper. If credit is an issue the rate had better cover the risk. Depending on the state foreclosure or regaining possession can be difficult and expensive!
I like the answer by Caroline Gerardo.
Land contracts can be dangerous, if this person cannot get a loan there is likely a reason.
And everyone who the buyer owes money to will be able to attach a lein to this property the minute it closes.
Makes if difficult to foreclose if they do not pay.
I am not a fan of land contracts so owner financing woudl be my preference.
It amazes me that there are markets in this country where it's necessary to offer seller financing to get a house sold - unless they want to earn interest on the note.
Don't do this without a lawyer. Don't buy rack forms.
CAR forms should have all that stuff . . . and as far as whether a contract for deed/land contract or note and deed of trust . . . that is gonna be an attorney question. We don't use the former in AZ any more . . . carryback financing is via a note and DOT.
Depends upon the State. Use a Lawyer.
Attorney should be used.
There are so many dyanmics here that a general comment is all I can give. At the end of the day, the first is carried by the seller with appropriate paperwork. If the down payment is not sufficient, the risk is higher.
What jurisdiction are you in?
SFA = ya got me there. Why wouldn't you want your mother in law to get 100% of her money?