what " Seller willing to hold mortgage" means?

Question

one of the listings I came across, two apartments with a store front, had " seller willing to hold mortgage".  what is this supposed to mean?

Jay Hinrichs · Answer

seller will owner finance and be the bank

Jay Hinrichs · Answer

another thing you will find with seller finance deals.. sellers are willing to do it with 50% down or more.

or when you see seller financing on building lots its meaningless because construction lender will want first position and or you need seller carry back to subordinate..

Chris Stratton · Answer

Interestested in the suggestions for terms?  I'm checking out a property  which offers owner financing and would like to know 'typical' terms.  We already hold a couple of notes ourselves - both @ 20 yars - 10 year ballon.  This property is a 60K condo (2br/1bath)

Michael Henry · Answer

@Terry Fisher - might have found yourself a deal. Let us know if you if you need help with terms.

Good luck

David Dachtera · Answer

@Terry Fisher,

You need to learn more about the property. If the owner has it free-and clear, there is no underlying loan. If there is, that's another question.

... but you need to find out first.

Terry Fisher · Answer

thanks..

so it's kinda of a bait that the agent or the owner throws out there, hoping for an investor to hookup.

how an investor protect themselves from owner defaulting on the mortgage though? is there an insurance policy for that?

Kyle Doney · Answer

It means that you wont have to go get financing. The owner is willing to sell to someone with owner financing. Likely they don't want to deal with the day to day headaches, but are still looking to make a return on their investment instead of a one time cash out sale. Investors drool when they find a seller willing to do this. It takes one part out of the buying process, which is finding financing. You should dig deeper.

what " Seller willing to hold mortgage" means?

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