Use a Seller-Held Mortgage Note to Help Sell Your Home

The real estate market in 2009 is pretty uncertain. There are signs of recovery, but these have taken the form of increased sales, not higher housing prices. Is this just a bump created by adventurous speculators, or an honest increase in basic consumer demand? One thing that is certain is that many current homeowners are hesitant about buying to "move up" to larger homes or homes with better locations. In many cases the desire is there, but hesitant buyers want a sense of increased economic security by getting a more flexible loan. When the new purchase would be conditional on the sale of their own home, hesitancy from other buyers is also a factor.

A seller-held mortgage note can help encourage hesitant buyers to take the plunge, especially if you can tailor the loan conditions to deal with the buyer’s specific concerns. For example, you might be able to tailor the loan to make the condition that he sell his own home unnecessary.

A seller-held note is especially useful for younger buyers in search of a first home. A seller-held note typically has a shorter duration, so it appeals to younger professionals who don’t have children or other complex demands on their incomes. In the past the drawback to targeting this group would be a relative lack of credit history but as couples have children later and concentrate on their careers, you’ll find that more and more members of the demographic have well-supported credit histories and are credible borrowers. In many cases a larger home is their prerequisite to starting a family, but they don’t want to raise children under the shadow of a long-term debt.

The other side of the equation is that as the note holder, you need to exercise due diligence by examining a buyer/borrower’s credit history and situation, work under the advice of a real estate owner, and have clear rules for payment and management of the note. Your seller-held mortgage note or trust deed has the potential to excite and attract potential buyers, but you have to deal with it responsibly, in an organized fashion. Most importantly, you need to decide where the buyer’s payments fit in your own budget. Fortunately, we can help you sell your note if you need a one-time payment to pay bills, move forward with life goals or even simplify your financial life. Ask for a quote to find out more.