Creative financing question

5 Replies

We have a seller that wants to get under contract, so she can rest easy and make future plans.  She has had it under contract before with another buyer and they backed out at last minute.  She is afraid for that to happen again, so she has asked for a $15,000 down payment.  House price is $125,000.  

IN order to give her the $15,000, we need to protect ourselves.  My thought is to do an owner finance - actually close on the property; give her the $15,000 down payment and the balance when she moves in January.   

She is retired, single and has 7 dogs.  She does not want to deal with listing and wants to get the sale of her house off of her plate.

Any suggestions on how to handle the deal?   Am I close to being on the right track?  

Thanks for your helpful feedback.


Are you paying all cash for this house and she just needs to have until January to move ?  

Originally posted by @Charlie Fitzgerald :

Are you paying all cash for this house and she just needs to have until January to move ?  

 It sounds like she wants to give her the house 

Yeah, maybe.  It's a little muddy in my head...need more details

Yes. All cash. I'm thinking we "save"the $100k until January and just give her what she wants/needs now.

Is this option a nightmare waiting to happen?

When you say "give her the $15,000," what you REALLY mean is put it in escrow, right...? Because giving the seller money is never a good idea. Give it to the title company or attorney handling the closing so she knows it's there, but she won't get it until you close. You would stand to lose the deposit if you backed out, so either way she is covered.

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