Real Estate Articles » Money & Finance

Justice & Mercy / Seller Financing To The Rescue?

By: Emmett Dixson
Submitted: 06:24AM on Saturday 25 April 2009

An ambitious young man excited to start his own farm incurs a large debt to buy an old run down farm. The young man works his fields in hopes that his investment will render a return, all the while making small nominal payments to his debtee. The day comes when the contract is due and the collector comes for his due. When the man explains to him that he cannot pay, his debtee threatens to throw him in jail. The Debtee requires justice. He needs to be paid. While the young man pleads for mercy. How can this conflict be resolved?

A mediator is needed to be able to satisfy both parties. A mediator would pay the debt on behalf of the young man if he agrees and accepts the mediator as his debtee. The young man gets to continue to work his farm while the debt collector is satisfied.

While the comparison of this parable with the the current market situation has its obvious flaws and contradictions, there is still a point to be made. What if we could step in as the mediator and help satisfy the banks needs as well as the needs of the people who can no longer qualify for home loans? Equipped with the appropriate skills and tools, I believe we can.

The concept of owner financing is a win/win situation and we, as investors, have the opportunity to profit while helping others.