Protect your interests as a buyer or as a seller providing financing.
In a seller financing situation, the seller presumes the role of the lender. However, instead of providing the buyer with cash, the seller gives the buyer enough credit to cover the home’s selling price, minus the down payment. The seller and the buyer then agree to and sign a promissory note that outlines the loan’s terms. Then, with the local public records authority, they record a mortgage and the buyer makes payments on the loan incrementally with interest typically added on.
Most seller financing loans are for shorter terms. The idea is that a few years following the loan, the home will have increased in value enough or the buyer will have improved their financial situation enough so they can work with a traditional lender to refinance.
Before solidifying a seller financing situation, it is essential that if you are the buyer, you work with a notable closing firm to protect your rights. If you are a seller, you should partner with a closing firm to draft a contract that protects you from default on the buyer’s end.
At Innovative Closing Solutions, we have helped hundreds of buyers and sellers in the Winston-Salem, North Carolina area with the seller financing process. We can oversee the loan closing and ensure all terms of the loan contract are fair to both parties.
For detailed information about our closing services and how they can ensure a beneficial transaction, contact us today. We look forward to hearing from and working with you!