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OT has anyone sold a house and done owner finance?
aqha4mejt
Reg. Aug 2011
Posted 2019-02-15 11:44 AM
Subject: OT has anyone sold a house and done owner finance?


Elite Veteran


Posts: 959
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Location: Texas
I have a piece of property for sale and someone wants me to owner finance it. Can anyone tell me the good, the bad and the ugly about it? I am afraid to do a lease because I have heard the horror stories! I need advice!
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horsegirl
Reg. Feb 2004
Posted 2019-02-15 11:53 AM
Subject: RE: OT has anyone sold a house and done owner finance?



The One


Posts: 7997
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Location: South Georgia
No way Jose! I own a rental property and have researched this a good deal. Opens up too many doors to get screwed over.
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Southtxponygirl
Reg. Nov 2006
Posted 2019-02-15 11:55 AM
Subject: RE: OT has anyone sold a house and done owner finance?



A Somebody to Everybody


Posts: 41354
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Location: Under The Big Sky Of Texas
Not a good ideal, I'm with Horsegirl, waiting for a screw over..  
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okhorselover
Reg. Feb 2016
Posted 2019-02-15 12:01 PM
Subject: RE: OT has anyone sold a house and done owner finance?



Elite Veteran


Posts: 885
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I agree. If they don't have the money to buy it out right, don't do owner financing. Tell them to go to the bank for a loan if they want to buy from you.
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bten
Reg. Apr 2015
Posted 2019-02-15 12:06 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Veteran


Posts: 225
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Location: Montgomery TX
MOST (not saying ALL) people want to owner finance because the bank will not loan them the money. If the bank don't trust them, why should you? Me personally, I would not do it.

ETA - my father in law owner financed a 1/4 acre lot - they made one payment in the past 4 months - and they have built stuff on the lot and have trash/metal, old cars etc everywhere.

Edited by bten 2019-02-15 12:33 PM
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got boost?
Reg. Sep 2003
Posted 2019-02-15 12:07 PM
Subject: RE: OT has anyone sold a house and done owner finance?



Loves to compete


Posts: 5760
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Location: Oakdale, CA
 I agree with everyone..............they need to get a loan.  If the bank won't loan them money you shouldn't because of the  risk of it.........
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Delta Cowgirl
Reg. Apr 2005
Posted 2019-02-15 12:51 PM
Subject: RE: OT has anyone sold a house and done owner finance?



The Vaccinator


Posts: 3810
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Location: Slipping down the slope of old age. Boo hoo.
No - don't do it. It's a huge red flag when someone asks for owner-finance.... do not do it.
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Silly Filly
Reg. Feb 2004
Posted 2019-02-15 1:09 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Elite Veteran


Posts: 695
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Location: Windoming
Sure glad the owners that financed us didn't feel the way most of you do.  They financed 40 acres with improvements on it.  I'm sure we could have gotten a bank loan, but it was a lot less hassle this way.  And they got to make some interest on it.   Thinking back on it, it was financed at 10 percent interest, which sounds terrible now, but was actually low then!  At that same time, we had a "low" interest WCDA loan on our house for 13.5 percent!  Back in the eighties.

Edited by Silly Filly 2019-02-15 1:11 PM
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Whiteboy
Reg. Jul 2012
Posted 2019-02-15 3:54 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Military family

That's White "Man" to You


Posts: 5515
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I've done it and made good money on the deal.  You have the same rights a bank would have to foreclose if they don't pay.  Charge above market interest rate and be sure to get a good down payment.   
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RockinGR
Reg. Feb 2009
Posted 2019-02-15 4:37 PM
Subject: RE: OT has anyone sold a house and done owner finance?



Hummer's Hero


Posts: 3071
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Location: Smack Dab in the Middle
I haven't sold one...but I purchased my house on a title for deed. We had excellent payment history and owned our own business, but we had to DRAIN our savings due to buying a truck (semi) who's motor decided to blow about 90 days after we bought it. Took all of our savings for a house and then some to rebuild it--and we had ZERO choice. About a year later, we were looking at having a baby and in a terrible living situation due to a horrible co-tenant and spineless "landlord" and we needed a place!

I was extremely cautious to protect myself AND the seller. We put down as much as we could and set up an escrow. Not only did I want to reassure the seller, but I wanted to protect myself...I wanted to know that my payment was paying things like the mortgage payment and that my house wouldn't get repo'd by his bank. Property taxes so that I wouldn't get stuck with back taxes at closing. I wanted him to know that the insurance was being paid. And that all of it was being done TIMELY. We also paid interest over market value. Our contract stated that we could make whatever improvement or changes that we wanted, but if we renegged, we forfeited everything paid.

We paid our payments, made repairs that were needed and A BUNCH of improvements. Saved our money and we "refinanced" to purchase the house/property deed within our contract period of 5 years. We'd made enough improvements to accumulate nearly 29% in equity in those 5 years, so other than closing costs, we did not have to put additional money down on it.

It can work.

Edited by RockinGR 2019-02-15 4:42 PM
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NJJ
Reg. Jul 2006
Posted 2019-02-15 5:03 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Military family

Fact Checker


Posts: 16572
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Location: Displaced Iowegian
 I am not sure what the problem is with your buyer but if it is only the lack of down payment money, this is what we did. Years, ago, we sold a property in Iowa and the buyers were lacking about $8000 for the down payment. We worked with them AND the bank and we took a second lien against the property (Bank had 1st lien). They paid towards our lien with their bank payment and we got our money 5 or 6 years down the road. Had they defaulted on the loan we would have only got the rest of our money IF the sale of the property was over the bank's lien.  
 
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okhorselover
Reg. Feb 2016
Posted 2019-02-15 5:39 PM
Subject: RE: OT has anyone sold a house and done owner finance?



Elite Veteran


Posts: 885
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I forgot but we did owner finance a land sale once. But the buyer was a guy we had known since he was in high school. He cleaned stalls & took care of horses when we went on a 3 day barrel race. So we knew who we were dealing with. It worked out great. In my area there is no way I would. People today are different today then back when we sold that land we had.
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texpat
Reg. Jun 2013
Posted 2019-02-15 6:30 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Veteran


Posts: 229
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I'm a Realtor in Houston and have done many owner-financed sales. What is the sale price?
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vjls
Reg. Mar 2005
Posted 2019-02-15 6:50 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Miracle in the Making


Posts: 4013
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make sure they have money to put down  have a lawyer draw it up just like a bank  normally i charge 1 % more than bank  yes i have gotten taken 2 time

rehak i forecloused on him afyer 8 years   and the next i had to evict take to court and i won but lost

i have owner finace several times and done quite well. but  u got to make sure the payment has taxes and insurance included so ypu pay it and a late fee and option like bank if the miss even 1 payment you can start foreclosing pricedure but main thing they need to have  at least 3% down 
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aqha4mejt
Reg. Aug 2011
Posted 2019-02-15 9:07 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Elite Veteran


Posts: 959
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Location: Texas
Sale price is $225k.. The people who want it can't get financed and the ones who can want a fancier house. Ugh
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aqha4mejt
Reg. Aug 2011
Posted 2019-02-15 9:10 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Elite Veteran


Posts: 959
5001001001001002525
Location: Texas
thank you all! Now I'm really confused. Part of me is worried they'd default on the loan and trash the place but then I would make the interest! To me it's a better option than renting it out. At least if they put $$ down they might not default so quickly.
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aqha4mejt
Reg. Aug 2011
Posted 2019-02-15 9:12 PM
Subject: RE: OT has anyone sold a house and done owner finance?


Elite Veteran


Posts: 959
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Location: Texas
horsegirl - 2019-02-15 11:53 AM

No way Jose! I own a rental property and have researched this a good deal. Opens up too many doors to get screwed over.

I'm afraid to lease it because of all the horror stories I have heard.
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Frodo
Reg. Jul 2004
Posted 2019-02-16 8:26 AM
Subject: RE: OT has anyone sold a house and done owner finance?


"Heck's Coming With Me"


Posts: 10793
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Location: Kansas
We did it and it was working quite well until a divorce entered the equation.  Went a little sour then but in the end we didn't get hurt.  Our only mistake from the onset was not asking enough in the way of monthly payments.   You have to do this with people you entirely trust though.  They can trash your property and leave you very angry.
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kakbarrelracer
Reg. Dec 2003
Posted 2019-02-16 11:48 AM
Subject: RE: OT has anyone sold a house and done owner finance?



Strong Willed Woman


Posts: 6577
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Location: Prosser, WA
 We sold a place that way. The house was an older mobile home and not worth much. Their down payment would have covered any cleanup. It went well for us
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okhorselover
Reg. Feb 2016
Posted 2019-02-16 1:40 PM
Subject: RE: OT has anyone sold a house and done owner finance?



Elite Veteran


Posts: 885
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aqha4mejt - 2019-02-15 9:07 PM

Sale price is $225k.. The people who want it can't get financed and the ones who can want a fancier house. Ugh

I would also do a thorough back ground check, employment history & financial check on anyone. $225,000 is a lot of money to owner finance. JMHO.
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