Tell us about the property you are selling
Owner Financing
The fastest way to sell a property, where the property is owned free and clear, is through an Owner Financing sale.
An Owner Financing sale involves the seller creating a loan for the buyer to buy
the property with. If the seller owns the property free and clear, the loan can be
created with a simple note. If the seller already has a loan on the property, the
loan payments can be assigned, using a mortgage payment assignment sale, or a new
loan can be created using a wrap-
Owner Financing Sale Example
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In this example, the property is sold at a premium price by creating a loan that is made by the seller and given to the buyer. Because the property is sold with financing, it will generally sell FASTER and at a PREMIUM PRICE.
The exact terms, including the interest rate and monthly payment are negotiated with
the buyer. In general, properties sold with financing will demand premium interest
rates (2-
Stonehouse Property Solutions can manage this entire process for you by contracting to buy your property from you, creating the loan and all necessary paperwork, and then assigning the contract to a buyer that would like to buy a property with owner financing.
Owner Financing Sale Advantages and Disadvantages
The advantage to selling a property through owner financing is that it will typically sell much FASTER and even at a premium sales price because it comes with financing. Also, because the interest rate is at a premium, you DO get a nice return on your money. Additionally, because you have a first lien on the property, it is a secured investment.
The disadvantage to selling a property with owner financing is that you don’t get all of your money at the sale – instead you get it in the form of monthly payments.
If you want to place a time limit on the loan you are making, you CAN put a balloon term in the note, making the loan expire after 3, 4, or 5 years (or any amount of time you desire) at which point the buyer will be required to refinance and you will receive all of your money.
For many sellers this is ideal – fast sale and excellent return on their money. For
others, they would prefer to sell FAST and at a PREMIUM PRICE and get ALL OF THE
MONEY up front. Unfortunately, no such options exist, so you have to choose between
the tradeoffs of selling using the various options listed in on this website. For
people that own properties free-
Common Questions about an Owner Financing Sale
Question: How long does this process take?
Answer: Normally 2-
As with any sale, you can negotiate the closing date with the buyer.
Question: What are the odds of success?
Answer: Good! Of course many factors affect the odds of success – most notably, would anyone want this property with the payment?
It has always been true that offering a property with financing, as is done with owner financing, allows a property owner to sell a property FASTER than any other method of selling a property.
Question: What if the buyer stops making the payments?
Answer: If payments are missed, you have the right to foreclose on the property and
get it back. In most cases it would be preferable, however, to call the buyer (or
let the loan serving company do this) and try to resolve the situation, by telling
the buyer to deed the property back using a deed-
In all cases if there is trouble with the buyer, call Stonehouse Property Solutions, and we will be happy to help resolve the problem and/or get the property back so that we can quickly buy and sell it again.
Question: What if the buyer trashes the property?
Answer: The advantage of SELLING a property through owner financing is that the buyers are actually buying the property and not renting. In most cases buyers have a pride in property ownership and care more for the property than renters.
Additionally, these buyers are bringing their hard earned money to closing when they buy. So unlike renters who are just putting down a small deposit, the buyers have much more skin in the game, in the form of their down payment. They may even make substantial improvements to the property after they buy it as is the case with many homeowners.
Finally, if you threaten to foreclose
on a buyer, you can also often negotiate the
terms under which the buyer will return the property to you, in exchange for you
treating them more fairly in a foreclosure proceeding. For example, you can offer
to allow them to stay in the property for an extra so many days in exchange for them
cleaning and make-
Regardless of the condition of the property, it can always be offered to a new buyer
as-
Question: What about 1098 Interest statement and other documents that need to be issued each year?
Answer: You can generate these yourself, or a loan servicing company can generate these for you.
Stonehouse Property Solutions can help you find a good loan servicing company.
Question: What kind of end buyer will buy the property?
Answer: Possibly a person with less than perfect credit, but with an income sufficient
to make the monthly payments, and enough up front cash necessary to pay most of the
fees, and closing costs associated with the Mortgage Payment Assignment Program.
Possibly a self-
STOP FORECLOSURE!
Don’s lose your home and credit!
Our goal is to help you avoid foreclosure and save your credit. We will help you to find the best possible Solution.
For free Consultation call: (832) 463-
How does this process work?
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That's it!
Our Guarantee
Stonehouse Property Solutions is uniquely different from other real estate solutions providers. Contact us and we guarantee the following:
1. We will always make you an immediate cash offer
2. We will also make you some creative offers that may be more beneficial to your situation and timeframe
3. We will also offer to list your home, with one of our affiliate agents, with our
purchase offer as a back-
4. Our offers are no-
in any condition
