Investor · Member since 2024 · 183 posts · 63 votes
1y
@Ken M. Seller financing simply means the Seller is providing financing. REO means it is owned free and clear. Wrap note on my primary residence where i sell the property for higher amount because the property has gone up in value can be sold with seller financing. @Heidi Christensen Due on Sale is dangerous especially now! With the new moves by companies selling off loans and other funds completing their due diligences is causing some headaches. We been talking about this recently, reach out if you have any questions.
@Ken M. Seller financing simply means the Seller is providing financing. REO means it is owned free and clear. Wrap note on my primary residence where i sell the property for higher amount because the property has gone up in value can be sold with seller financing. @Heidi Christensen Due on Sale is dangerous especially now! With the new moves by companies selling off loans and other funds completing their due diligences is causing some headaches. We been talking about this recently, reach out if you have any questions.
Normally, when you sell a property and keep a pre-existing loan, it is called a Wrap. Because now you are "wrapping" the new financing around existing financing.
Seller financing, in the industry, is on free & clear properties. The seller is providing the financing, no bank involved.
I was only looking for clarity on what was meant, (not trying to redefine your version).
Oh, and your comment: "REO means it is owned free and clear."
REO actually means "Real Estate Owned" - by the bank, (yes free & clear.) Normally that is a property that a lender has foreclosed on since they stopped receiving payments.
@Ken M. Seller financing simply means the Seller is providing financing. REO means it is owned free and clear. Wrap note on my primary residence where i sell the property for higher amount because the property has gone up in value can be sold with seller financing. @Heidi Christensen Due on Sale is dangerous especially now! With the new moves by companies selling off loans and other funds completing their due diligences is causing some headaches. We been talking about this recently, reach out if you have any questions.
Normally, when you sell a property and keep a pre-existing loan, it is called a Wrap. Because now you are "wrapping" the new financing around existing financing.
Seller financing, in the industry, is on free & clear properties. The seller is providing the financing, no bank involved.
I was only looking for clarity on what was meant, (not trying to redefine your version).
Oh, and your comment: "REO means it is owned free and clear."
REO actually means "Real Estate Owned" - by the bank, (yes free & clear.) Normally that is a property that a lender has foreclosed on since they stopped receiving payments.
Yes we, JKP, have foreclosed on hundreds of property in our 15 years in the note space. I was merely correcting that REO is the only time it is owned free and clear. Seller financing does not always owning something free and clear. Yes a Wrap is when you "Wrap" the existing loan however you are still offering the new buyer "seller financing" since the financing is coming from the seller and not from a bank or 3rd party.