Seller Financing - Six Safety Tips

Why offer seller financing when you sell? A higher price, a good return on your money, a faster sale and to sell a property that is otherwise difficult to sell. Some good reasons, but how do you do it safely?

1. Get a large downpayment. The most obvious way to be safe, and not always possible.

2. Get other security. If they want it with little down, and you like the return you'll get, make it safe by putting a mortgage on other property the buyer owns, to be released when they've paid down the balance to a certain level.

3. Check their credit. Have them pay for and bring you a credit report. Bad credit may be okay, but type of bad credit is important. Unpaid hospital bills they're disputing are not as relevant as unpaid loans.

4. Trust your instincts. If you are usually right about people, give some weight to your judgement of their character. I'd trust a man who felt morally obliged to pay his debts over a playboy that happens to have decent income at the moment.

5. Consider the whole picture. Suppose a bank will loan 90%, and is okay with you taking back a $5,000 second mortgage, allowing the buyer to get in with what cash he has. If you're getting $6,000 more than you expected by accomodating the buyer's needs, where's the loss? You're okay if he never pays the $5,000, right?

6. Talk to a lawyer. Maybe in your area it takes two years to get a foreclosure on a mortgage through the courts, and only six months to foreclose on a "contract for sale." Knowing these things can help you sell in the safest way.

Offering seller financing makes it easier to sell, and to get a higher price. Just be safe about it. Have a real estate lawyer review your paperwork, and use the tips here.

Posted by John Fifer on December 13, 2008 at 12:00 AM

About John Fifer
John Fifer is affliated with EXIT Realty Professionals, which is located in Lewes, DE. For further assistance please use the contact information located on the right.

As of 05/21/12 the John Fifer RePage is ranked at 3,809 with 410 points.

Local Information for Lewes, DE

Latitude: 38.775939 -- Longitude: -75.142101

ZIP Codes for Lewes, Delaware	19958
Area Code for Lewes, Delaware	302
Time zone for Lewes, Delaware	EST

Other Area Cities: Lewes, DE Rehoboth Beach, DE

Enter our Photo Sweepstakes and Win $200 for your Lewes photos!

To see random photos for other cities Click Here.

Submit your photos of Lewes and become eligible to win $200. Click Here for details.

Lewes (pronounced ['lu?s]) is an incorporated city in Sussex County, Delaware, United States. The population was 2,932 at the 2000 census and is considered to be the nicest of the Delaware resorts. The first European settlement in Delaware, a trading post founded by Dutch settlers in 1631, was named Zwaanendael (or Swaanendael, meaning "swan valley") and was located on the site of present-day Lewes. Since Lewes was founded earliest of any town in what is now Delaware, and since Delaware was the first of the original 13 states to ratify the U.S. constitution, Lewes proudly refers to itself as "The First Town in the First State." Lewes, together with the towns of Rehoboth Beach, Dewey Beach, Bethany Beach, South Bethany, and Fenwick Island, comprises Delaware's beach resort area and is Sussex County's most densely-populated and fastest-growing area. -- Source: Wikipedia.com

Delaware 2000 Census Population Profile Map

	Lewes	Delaware	United States
Population	2,932	783,600	281,421,906
Median age	54.9	36	35.3
Median age for Male	52.5	34.9	34
Median age for Female	56.9	37.1	36.5
Households	1,338	298,736	105,480,101
Household population	2,661	759,017	273,643,273
Average household size	1.99	2.54	2.59
Families	798	204,590	71,787,347
Average family size	2.53	3.04	3.14
Housing units	2,368	343,072	115,904,641
Occupied units	1,338	298,736	105,480,101
Vacant units	1,030	44,336	10,424,540

Visit US Census

Enter our Photo Sweepstakes and Win $200 for your Lewes photos!

Seller Financing - Six Safety Tips

Local Information for Lewes, DE

Latitude: 38.775939 -- Longitude: -75.142101

Wellness With Moira

Concentrix TSG

The Leader Spanish Real Estate

ATF Forex Trading

Lingerie & Perfumes