Is Owner Financing Or Renting?

1595 Words7 Pages
I have a somewhat unique perspective when it comes to foreclosures. I have owned and operated businesses as a Real estate appraiser, real estate broker, mortgage lender, and insurance adjuster. For more than 15 years I specialized in the appraisal of foreclosed properties. Around 2008 virtually everyone in the appraisal industry became foreclosure appraisers. It was interesting to see people that had very little experience and knowledge in this area start to proclaim their expertise. It’s funny how little documentation or proof is needed to advertise as an expert. The first thing in the buying process that I would point out is that not everyone that claims to be an expert has the education and experience to lead you in a direction that is…show more content…
I want to be very clear about something of great importance. I could go into all of the reasons why owner financing is better and there are many but I will simply say that as a former lending company owner that Banks exist to make money. They would like to see you finance your home and everything you buy for life. I am not saying that they have no good use. What I am saying is that you are typically going to pay more when you finance with the bank and the liability will likely be much greater.
If you are going to owner finance you should make every effort to secure your position as leinholder. It is always best to have a deed issued although this might be something that the owner will promise to issue after a certain amount of time or number of payments. What I mean is that you should have legal representation and a valid contract should be in place and deed issued if possible. I have been drafting reviewing purchase contracts as an investor, real estate broker, real estate appraiser and mortgage banker for many years and very often there are errors or items within the contracts which make them not properly executed, expired, null and void, contradictory, or expose the parties to a great deal of liability. All of this may be avoided by having proper legal representation.
Terms are often negotiable so don’t be afraid to ask for a better deal. If you aren’t embarrassed by the offer you
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