Owner Financing, lease to own, Any experts willing to speak with me?

[hazmat]

I think rent to buy would be my first choice. Basicallly they get to move into the place & pay market rent + extra which builds up a downpayment. They have an option to purchase at a later date for an agreed to amount. If they decide not to purchase, you keep some or all of the "equity" they have been building up in return for not having sold the place to someone else. Have an attorney familiar with rent to own write up the lease/contract.

I'm not sure what your selling price is, but I assume based on your location that they would be able to accumulate a measurable amount of equity in a year or two by paying a few hundred extra per month. In my area, you'd have to pay $1K extra to build up 5% in a year. The monthly payment should be on par with a mortage payment - shows the bank they are able to make the payment, should help with them getting financing to close the deal.

If you decide to go with owner financing, the baloon payment seems like a good idea.

I was approached about owner financing when trying to sell 1/2 my rental property, it was because the buyers couldn't get "conventional" financing, all they needed was 5% down for first time homebuyer programs. (Of course, there is a bit of a credit crunch right now.) I had to wonder how they were going to afford a $300,000 mortgage if they were not capable of saving $15,000??? In my case they wanted me to offer a 2nd mortgage which I was not interested in - as the "bank" gets first dibs.

 

[dubba]

I know nothing of this company other than it seems like a good idea ?

CircleLending | Seller Financing: providing secured legal documentation and payment servicing to help simplify seller financing agreements between buyers and sellers.

 

[California]

I know nothing of this company other than it seems like a good idea ? CircleLending ...

That seems worth checking out.

But your post gave me an idea: Every community has a foreclosure specialist. Ask a title company who is the best one in town, and have them draw up the Seller Finance or Lease to Own papers. They can probably check out the buyer for you, too.

A firm but reasonable contract is your best guarantee that things will go as intended.