Seller financing question

[Nicole Faucher]

I am going to offer seller financing on a house I bought as a REO. Should I include escrow in the payment or let them pay it themselves? It's a weird situation but the person I am offering the seller financing was renting it out to someone else who thought they owned the house so she did not have insurance or paid the taxes.

Thanks,

Nicole

[Jason Zundel]

I generally recommend that it be included in the payment when it comes to seller financing.  At the end of the day, you are legally responsible to for the taxes for so long as the property is still in your name, and many seller financing arrangements will have title stay with the seller until the payment is fully made, especially subject to scenarios.  Thus you will be better protected by having the the escrow payment included in the payments the buyer is making to you.  It adds a bit more to your workload, but not enough that it isn't worth it for the safety and security.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.