Seller financing offers

[Xavier Xthrax]

I am thinking about sending out offers to buy property were I offer to make payments for the deed to land. So at the closing I would receive the deed and then start making payments.

To make this happen I realize I need to offer a sale agreement with a note (with my terms).

My question is would I need anything else and long as the property is free and clear? Maybe a mortgage?

Thanks for your help.

[Jeff Copeland]

The standard Florida FAR/BAR As-Is Contract has an option (paragraph 8.d) for seller financing, and a seller financing addendum that outlines proposed seller financing terms when you make an offer. So it really is as simple as making an offer that proposes specific seller financing terms.

Once the offer/contract is signed, take it to a title company, and they'll handle the rest. 

Note that you would be responsible for all mortgage costs, to include preparation of the mortgage and note by an attorney (probably $500-1000, due at closing, in addition to other customary closing costs - which is no different from using a mortgage company and paying origination charges). But the doc prep would be coordinated by the title company.

Note that seller financing isn't as easy to find as one might assume. The seller is usually limited by their current mortgage balances, which would need to be paid off at closing (presumably out of your down payment). 

For example, If I wanted to sell you my $300k home for $275k with seller financing, and I owe $120k on my first mortgage, and $30k on a HELOC, the least I can take as a down payment from you is $150k (plus closing costs). In which case, I'd walk away from closing with no cash, and nothing but the mortgage note.