Owner Finance and Sell the Note

How to Structure Seller Financed Notes

With today's ongoing struggles within the mortgage industry, you will see more seller financed deals than ever. This post will attempt to provide some details on how to structure a seller financed note.

Notes are merely a promise to pay a certain price, for a period of time, and other certain conditions surrounding the sale of an REO asset, whether a home, car, boat etc. Notes are also called purchase money mortgages, owner financed notes, or just notes.

Before entering into a contract, make sure that you consult an attorney for the proper language, because there are several different types on the Internet. Certain land contracts or deeds of trust slant either in the favor of the seller or buyer. If you are the seller, you certainly want one that slant in your favor. Most attorneys know eactly what you are talking about if you call them and tell them you want to owner finance a piece of property. Let the attorney draw up the note, the mortgage, and the deed.

Do not sell your home or sign any contracts or deeds of trusts until you properly checkout your buyers credit. When selling an REO on land contract of deed of trust, you must think like a banker for resale (selling your note) purpose or to protect your own interest in the sale. Subscribers to our REO Black Hole list will receive a simple "Credit Check" form that will allow you to check your buyers credit BEFORE you agree to sell to them.