Seller Carry back

Seller Carry back / Owner Financing

Have you noticed more Owner Financing opportunities in your MLS or in the local newspaper real estate classifieds?

What does that mean? Well, it means that the seller assists the buyer by acting as a lender and financing part or all of the sale of the sellers’ property. The term applied to such financing is carryback financing. The seller versus a lending institution, is literally carrying back part or all of the financing on the property.

Can this be applied to different types of real estate? Sure! Large parcels, lots, mobile homes, mobile homes on a lot or large parcel, single family residences, condominiums, motels …. you get the idea.

Who benefits? The seller and buyer! Why? For the buyer, the rigorous lender qualifications aren’t involved, seller lending terms may be more favorable than those offered by a lending institution, lower closing costs and reduced personal liability ( the property sold is the security for the debt ).

Benefits for the seller include a larger number of prospective buyers, an opportunity to defer taxes on an installment sale, a higher sale price plus terms that provide for monthly income and a cash payment for all or a portion of the note carried.

Sounds great, huh?! Well, why aren’t more people doing it? Because there’s a lot to it!

If you, as a buyer are interested in going down this road, I recommend that you work with a Realtor who has extensive experience with seller carry back transactions and/or an attorney, with the same type of seller carry back experience. Each of these people will discuss and review your offer/ counter offer terms and make sure that your risk is minimized, that you understand your responsibilities and that the reward of homeownership is truly within your grasp.

Here are two local legal contacts in Mammoth Lakes:
1. Jim Reed of Liebersbach, Mohun, Carney & Reed at 760-934-4558
2. Therese Henkel at 760-934-3133

Please share your thoughts by leaving a comment or call me, toll-free, at 800-231-0622.

For more information on Mammoth Lakes real estate please log onto my real estate website at www.easternsierraproperties.com