Selling a Seller Financed Deal

[Joe Stout]

Hey guys!

I've got a deal I'm going to have the seller finance 100% of at a 1% interest rate. Assuming this deal closes, what will happen when I want to sell the house? How does this work with the mortgage on the home still being under the seller? Im assuming I would go to the closing table- but then organize something with the title company that sends the proceeds to the original owner's account (The guy I bought from)?

Thanks,

Joe S.

[Wale Lawal]

@Joe Stout

Both parties in a seller-financed deal should hire a real estate attorney or real estate agent to write and review the sales contract and promissory note, along with related tasks. Try to find professionals who are experienced with seller-financed home transactions—and who have experience where you live, if possible, because some relevant regulations (such as those that govern balloon payments) do vary by jurisdiction.

Seller financing can be a helpful option in a challenging real estate market. However, the arrangement triggers some special risks for buyers and sellers, and it's wise to engage professional help to mitigate those and allow the process to run smoothly.

All the best!