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Why you need to know about seller financing

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Even Big Media is catching on to the potential of seller financing in this tight housing market where you often find buyers who can’t get bank financing. I just came across this article in the WSJ that paints this scenario to a “t” and wanted to pass it on to you… Enjoy–and think about how it applies to you as an investor!

Scott
REI Bulletin

Here’s the article…

The Wisdom of Seller Financing:

You’ve Got A Buyer, But He Can’t Get a Traditional Mortgage. Should You Lend?

Q. My house has been on the market for seven months. We got our first offer this week. It was for the full asking price, but the buyer wants us to finance the mortgage. The buyer says that he lost his job last year and had to file for bankruptcy, but now has found another job and is paying off his bills. Because of the bankruptcy, he can’t get a traditional loan. He has offered to pay us a better interest rate than we could currently get on a certificate of deposit.

We own our current home free and clear and are planning to downsize. We have enough cash saved to buy a smaller home. But we’re worried about lending to someone who has been through bankruptcy. Should we take this deal?

–Chicago

By JUNE FLETCHER, excerpted from the WSJ.

For the answer to this question and to get the rest of the article, click here.

NOTE: Make sure you notice the very last sentence in the article. That’s where you come in.

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