Ways to find seller-financed properties?

Question

I’ve tried to do as much research as possible on seller financing. Most people on here have said look for FSBO properties which I have started doing without any luck yet. My question is is there any kind of database that is available to find local homes without mortgages? Finding houses that are paid off would help me get in touch with the right sellers. Thanks

Shiela R. · Answer

@Paul Brady you can search for free on most county sites to see mortgage history.  There's a few databases that offer paid service.  You could ask about them here on BP? I am licensed so I search public records through the MLS. Networking with a probate lawyer or law firm might help you find those properties too.  But, as mentioned, you don't have to find properties that are free and clear to find seller financing.  It is, however, a whole strategy and not for uneducated newbies.  The easiest, truly no money down structure is a sandwich lease option.  Sub to you often have to bring the mortgage out of arrears and pay for deferred maintenance, sometimes even help the seller move.

Brian Wilson · Answer

Seller financed doesn't mean there isn't a mortgage in place at all. This is where strategies like "subject to" come in. You can write up a land contract and assume responsibility of the existing mortgage obligation, then you would have the seller cut a note for whatever the balance is of the agreed upon purchase price. It in theory could be "100% seller financed" or a small down payment on your end. Ultimately there are risks for both you and the seller with sub2 deal structures so do some research before pursuing this strategy.

Brett Deas · Answer

One place is landwatch.com. They have a whole section about Seller finance listing and not all are just land, there are houses as well.

Wale Lawal · Answer

@Paul Brady

When a home purchase is financed by the owner, the owner assumes the lender's role. Instead of receiving cash up front, the seller is paid monthly mortgage payments plus interest. Owner financing benefits the buyer because down payment and credit requirements are often more flexible. According to Nolo, less than 10 percent of sellers are willing to finance the home themselves. Finding an owner willing to finance a home can be a challenge, but you can improve your chances by following a few steps.

• 1.Talk to a real estate agent or broker. If you find a home that you are interested in, your agent can approach the listing agent to see if owner financing is a possibility. The agent might also know of a homeowner eager to sell and willing to explore creative financing options.
• 2.Check a public Multiple Listing Service site. Although most MLS sites are reserved for real estate agents, some counties offer public access. If owner financing is offered, it is typically mentioned in the “comments” section of a property.
• 3.Check real estate listings for homes for lease with an option to buy. With a lease option, you can buy a home at the end of the lease term if you qualify for a loan. Some sellers are willing to apply a percentage of your rent toward the down payment to help you save. If the seller wants to move the home fast, you can mention the possibility of owner financing.
• 4.Drive around areas you might be interested in living. Look for signs that say "For Sale by Owner." Contact these owners to see if they are interested in an owner financing deal.
• 5.Spread the word. Let your friends and family know you are looking to buy a home with owner financing. Search local classified ads online and in the newspaper for owner-financed deals. You can even post your own ad to reach potential sellers.
• All the best!

1.

Talk to a real estate agent or broker. If you find a home that you are interested in, your agent can approach the listing agent to see if owner financing is a possibility. The agent might also know of a homeowner eager to sell and willing to explore creative financing options.

2.

Check a public Multiple Listing Service site. Although most MLS sites are reserved for real estate agents, some counties offer public access. If owner financing is offered, it is typically mentioned in the “comments” section of a property.

3.

Check real estate listings for homes for lease with an option to buy. With a lease option, you can buy a home at the end of the lease term if you qualify for a loan. Some sellers are willing to apply a percentage of your rent toward the down payment to help you save. If the seller wants to move the home fast, you can mention the possibility of owner financing.

4.

Drive around areas you might be interested in living. Look for signs that say "For Sale by Owner." Contact these owners to see if they are interested in an owner financing deal.

5.

Spread the word. Let your friends and family know you are looking to buy a home with owner financing. Search local classified ads online and in the newspaper for owner-financed deals. You can even post your own ad to reach potential sellers.

All the best!

Ways to find seller-financed properties?

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