Purchasing a property in this economy can be a challenge for many potential owners. These difficulties can be made even greater when an individual doesn’t have the ability to obtain a mortgage loan through a bank or traditional lending institution.
This is where seller financing can be of tremendous benefit! Seller financing, also known as owner financing, allows a buyer to work directly with an individual seller to purchase property. Of course, you might have many questions regarding this form of financing, including, “What are the risks associated with purchasing property via seller financing?”
What Is Seller Financing?
The following information will briefly cover what seller financing is and help you better understand any potential risks that may arise with this financing option.
When securing a mortgage loan through the traditional means is not possible, seller financing can provide the buyer with the option they need. When purchasing through seller financing, the seller will be able to determine the interest rate, payment intervals, and many other aspects of the sale.
On a side note, even when an individual buyer can work through a traditional lender, it may make more sense to go the owner financed route if they are looking to close faster on the purchase.
Do you or someone you know have questions about the risks or pitfalls surrounding seller financed properties for sale in Edinburg? Contact the knowledgeable staff at Santa Cruz Properties for clarity regarding these matters!
What Are the Risks of Seller Financing?
Just like any other major financing option, there are going to be a few potential risks buyers may face should they decide to purchase property via seller financing. Risks associated with seller financed properties include:
- Convoluted Agreements/ Unclear Terms of Payment: You may find that the agreement you’re signing isn’t very clear about financial details or the legal aspects of the transaction.
- Aggressive Collection Methods: As the bank has been eliminated from the picture, the seller may resort to aggressive collection methods that put pressure on the buyer.
- Unclear Terms of Closure: Though the closing process may be faster than traditional methods, the closing terms may be convoluted and lead to difficulties in the future.
Owner Financed Properties for Sale in Edinburg
These are by no means the only risks associated with purchasing property via seller financing options. For further exploration into the risks and benefits of seller financing, please reach out to the staff of Santa Cruz Properties.
We have the first-hand experience and knowledge to minimize any risks and get you into the property of your dreams.