Selling My SFR with Owner Financing

[Jennifer Niez]

I have a property in Kansas City MO which I am considering selling and acting as the bank with owner financing. This will be a first for me. Any advice? Do I need a real estate attorney to draw up the docs or will a broker be able to do it? Who do I contact if they stop making payments and I need to foreclose? What docs do I need to have in order to foreclose or collect a mortgage?

Thank you in advance for any information. I appreciate it!

[Steve Vaughan]

Here in WA we use a title co to close transactions so this may be different if it is customary to use a closing attorney in MO.

When I seller-finance a sale or buy, I submit a standard PSA that has a Method of Payment addendum to a title co, like normal.  This addendum outlines the terms and the title co outsources the financing doc prep to an attorney that does tons of these for them.  This only costs a few hundred bucks.

I also use a local bank that has a contract collection dept to hold the docs and manage the payments, amort schedule and interest reporting.  

If seller financing to an owner-occ vs investor, there may be more steps with Dodd Frank and all.  I'd run them through an RMLO to make sure they are 'qualified'.

Thanks for offering seller financing and good luck @Jennifer Niez!