Owner Financing and Mortgage Assignment Option 

What is meant by the terms "owner financing" and "mortgage assignment," and why are we doing these types of transactions?

In a difficult economy, owner financing is being used more and more. The tightening of the lending industry coupled with high unemployment rates has left many buyers with poor credit, making it difficult for them to qualify for a traditional loan. There are now more buyers who are unable to qualify than those who are, despite the large number of homes currently on the market. Many buyers who are perfectly able to make mortgage payments reliably are still refused by the banks.

Owner financing, also called "seller financing" or "seller carry back financing," is when the seller agrees to lend money to the buyer to purchase and close on the property. The seller plays the role of the banker and carries back the loan. Owner financing operates like a traditional loan, with the buyer sending regular monthly payments to the lender (in this case the seller). Usually the buyer will need to offer a down payment, the amount of which is negotiated between buyer and seller.

The two other types of owner financing are called “Wraps” or "Mortgage assignments."

Wrap Around- “Wraps” are usually used when there is a good amount of equity in the home and the seller does not want to keep reducing the sale price in a down market. The Wrap may allow the seller to sell at market value and not lose equity.

Mortgage Assignments –“Take over Payments” can be used when the home has no equity, very little equity or is upside down.

Selling one's home with a traditional agent would usually require that the seller bring money to the table.
The cost of selling your home with owner financing or mortgage assignment is much less than that of a traditional sale.

Our company will inform you of all your options regarding owner financing and guide you through the process so that you can make an informed decision based on your goals.

We offer an extensive list of services, depending on your situation. We market the property, find a buyer, handle all the paperwork, structure the loan if necessary and close the transaction. We are very flexible and most of the time our fees are covered by the transaction so you will have no money out of pocket. We structure the transaction with your needs in mind, customizing the process and terms to fit your needs. Our goal is to help you sell your home quickly and provide you with a pleasant experience.