Today I got this email from Teresa, a real estate broker:
I have a buyer with a good down payment. They make good money, but they are self-employed, have less than perfect credit, and are having problems getting financing.
They have been looking to buy a home around the $300-400k range. I would like to get you connected up with my buyer to see if they can use your creative financing techniques to make a purchase.
Let me know when you are available.
Sincerely, Teresa, Real Estate Broker
I can probably help this buyer. I look forward to talking with you. It sounds like you have found the kind of buyer who can benefit from creative financing.
What is the advantage to a buyer to do seller-financing? The buyer can avoid the cost and trouble of getting bank financing.
What is the advantage to a seller to do seller-financing? The seller will have more potential buyers and can probably get a better price than if the seller insisted on the buyer getting a new loan.
As an agent, what you are looking for is a buyer who can pay at least 8.0% to 10.0% percent down. You need that much to cover closing costs and commissions and other costs. Commissions usually get paid at closing. If part of the commission is to be paid when the buyer cashes out the seller, the commission owing should be secured by a mortgage from the seller.
You are looking for a seller who has a property with equity in it. It should be obvious that seller financing is not going to work in a short sale situation. The seller should have at least 10.0% equity in the property.
If the seller has only 10.0% equity in the property, the seller’s equity will generally be cashed out. Then the buyer’s monthly payment will equal the seller’s mortgage payment.
If the seller has more than 10.0% equity in the property, either the buyer will make a larger down payment or the buyer will owe the seller his equity on a second note.
These seller-financed deals are all unique. They are structured in different ways. I believe I can put them together so that buyer and seller are secure and so the lender will not object to the transaction. I would describe exactly how I handle these deals, but the information is “proprietary”.
When I put these deals together I represent buyer or seller – not both. But I make sure that I advise the party I am not representing to get legal counsel.
Bear in mind that seller-financing is not for everybody. Some want or need to be cashed out. And some would like to have a secured note that pays 6.0% per year. That beats a savings account.
I just closed a deal like this in Pierce County. The buyer is a contractor who is going to live in the house and run his business out of it. He has bought and sold a lot of properties. Property values are down, and now is the time for those wanting a bargain price to be buying.
I believe that in many cases seller-financed transactions can be closed even when there is a due-on-sale clause in the seller’s mortgage. However, the buyer or seller needs to come see me for a consultation so I can disclose the pros and cons.
If you are a broker, don’t be shy about calling. I do not charge brokers for time on the phone.
I also handle mortgage modifications, but it is structuring seller-financed deals that I find most interesting.
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James Robert Deal, Broker and Attorney
Broker with Agency One Realty LLC
WSBA # 8103, DOL # 39666
James at James Deal dot com
- 1 15605 Cascadian Way Bothell WA
- 2 Co-Brokerage Listing Addendum
- 3 Call A Real Estate Attorney BEFORE You Buy or Sell
- 4 Buy Real Estate In Partnership
- 5 Brook
- 6 How Much Is Your House Worth?
- 7 JRDeal-NewZ-12-13-17 CDC Manipulated Results Anthrax Vaccine Sickens Soldiers
- 8 Puget Sound Market Prices Up
- 9 Questions To Ask Before You Buy A Home
- 10 The Foreclosure Train Rolls On
- 11 Dodd Frank and Seller Financing
- 12 Buy This Book – Chain of Title
- 13 Jarjour Listing
- 14 For Sale By Owner
- 15 Bothell Real Estate Attorney
- 16 Real Estate Attorney And Real Estate Broker
- 17 Buyers With a Good Down Payment But Poor Credit
- 18 Seeking Lease Option and Contract Sellers
- 19 Underwater Properties – Short Sales – Modification
- 20 Condo Dues – Short Sale Then Bankruptcy
- 21 Open Telephone Line
- 22 Services We Offer
- 23 Seller Financing – The Original Financing
- 24 I Help Brokers Do Seller Financed Deals
- 25 Lease-Option Deals Open Doors
- 26 Zombie Foreclosures
- 27 New Federal Rules on Foreclosure
- 28 Washington MERS Suits Fail
- 29 Deceptive Practices in Foreclosures
- 30 Renters’ Rights in Foreclosure`
- 31 More Foreclosures Coming
- 32 Zombie Titles
- 33 Foreclosure and Income Tax Consequences
- 34 Facing Foreclosure? You May Have Options
- 35 Attorney Shawn Newman on Foreclosure Defense
- 36 Romney on Foreclosures – Bring Them On
- 37 No Friend to the Banksters… Attorney Nick Wooten
- 38 How does creative financing work?
- 39 Creative Financing – Seller Financing
- 40 FSBO – For-Sale-By-Owner
- 41 Modification Guidelines
15605 CASCADIAN WAY, BOTHELL WA LISTED FOR SALE $502,500 NWMLS 1295273 - rental house with land NWMLS 1295890 - land with rental house The zoning is low density multiple residential, LDMR. Snohomish County Planning says two single family homes, two or...
As both a real estate attorney and a real estate broker, I co-broker with other brokers, helping them to take more listings and service them better. This provides better service for sellers.
Call a real estate attorney BEFORE you buy or sell property. Call Attorney James Robert Deal at 425-774-6611. In many cases I offer a flat fee, payable at closing out of escrow.
If you do not have enough income to qualify to buy a home, join together with several others. But a larger home, big enough for several families. With multiple incomes you can qualify. If you want privacy you can jointly buy a tri-plex or a four-plex. These can be bought with an FHA loan with only 3.5% down.
Build your own home, custom construction, on this $530,000 lot, 1.75 acres in size. The property at 13931 Cascadian Way is 152 feet wide and 499 feet deep. It is 75,840 square feet in size. The property features a private meadow, a private forest, and a private brook. You can hear the brook from your bedroom window.
What is your Washington home worth? Click here to find out.
JRDeal NewZ JAMES ROBERT DEAL Political Activist - Real Estate Attorney - Real Estate Broker 425-774-6611 December 3, 2017 Read Online at: https://www.washingtonattorneybroker.com/jrdeal-newz-12-3-2017 DR. THOMPSON OF THE CDC ADMITS TRASHING DATA IN 2004, REVERSING...
Home prices in Seattle have doubled over the past five years.
Questions to ask before you buy a home.
Private corporations such as Loan Star and Caliber bought thousands of mortgages. The government pays them to modify mortgages, but they are quick to foreclose. They invest in high value instead of low value homes. They should be required to serve the interest of the local neighborhood as are banks. They should be regulated as banks.
There are seller financing restrictions when the buyer is going to live in the property.. No cash out less than five years. The rate must be fixed for the first five years.
Chain of Title How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud Purchase hardcover — $27.95 Available: April 2016 Hardcover 6 1/8 x 9 1/4 , 400 pages ISBN: 978-1-62097-158-1 Also available as an e-book David Dayen David Dayen is a...
The Northwest Multiple Listing Association listing number for this property is 1003544. The address is 13817 NE 40th St Bellevue WA 98005. See everything about this beautiful home at this link, including video: https://app.box.com/v/jarjour But ... Remember that this...
James Robert Deal, Attorney and Broker, assists for-sale-by-owner buyers and sellers. Call 425-774-6611 or 888-999-2022.
I am a real estate attorney serving Bothell, Washington. Contact me at 425-771-1110 or 888-999-2022.
James Robert Deal is both a real estate agent and a real estate attorney practicing in Lynnwood Washington. If He is your broker, he does not charge extra for legal work related to your transaction.
If you are a would-be buyer who has a good down payment and good income but poor credit, I am willing to help you buy property on a lease-option or contract basis. James Robert Deal, attorney and broker. 425-771-1110
Seeking Lease-Option and Seller Contract Sellers Open Phone Line to Brokers, Buyers, Sellers 425-774-6611 - 888-999-2022 I am working with several buyers who have strong income and good down payments but who have bad credit and cannot get financing. These buyers...
James Robert Deal, real estate attorney and real estate agent, handles mortgage modifications and short sales.
Deal with unpaid condo dues by short selling the condo and going through Chapter 7 bankruptcy.
James Robert Deal, Attorney and Broker, in Lynnwood Washington
We have an open telephone line to brokers, buyers, sellers, and clients in general who may need help with buying or selling real estate or who may need help with mortgage modification. Services we offer: Help to Brokers, Co-Brokering Escrow Setup Lease Option Deals...
AN ABBREVIATED HISTORY OF CREATIVE FINANCING The first forms of financing was seller financing. The buyer would buy personal property or real property and pay the seller on an installment basis. Over time lending houses grew up, and purchase mortgages developed....
Attorney James Robert Deal helps brokers structure seller financed real estate transactions.
LEASE-OPTION AND LEASE PURCHASE DEALS A lease-option or lease-purchase deal is a form of seller financing. With the lease-option deal, title stays in the seller until the buyer refinances or resells or otherwise pays off the seller. The wrap-around deed of trust deal...
CFPB: Zombie foreclosures hurt borrowers The Consumer Financial Protection Bureau is keeping an eye on “zombie” foreclosures, which it worries cause “direct borrower harm,” according to a CFPB executive. Zombie foreclosures occur when a bank starts the foreclosure...
New Federal Rules on Foreclosure —By Erika Eichelberger - Thanks to Mother Jones On Thursday, the Consumer Financial Protection Bureau, the federal consumer watchdog set up by the Dodd-Frank financial reform bill, announced a new set of foreclosure-prevention...
Judges Dismiss MERS Suits By Evan Nemeroff Two borrower-initiated lawsuits alleging that the Mortgage Electronic Registration Systems role in the plaintiffs' deeds of trust caused them injury were both dismissed by federal judges in the Western District of Washington...
Deceptive Practices in Foreclosures Thanks to the New York Times September 13, 2013 In early 2012 when five big banks settled with state and federal officials over widespread foreclosure abuses, flagrant violations — including the seizure of homes without due process...
Renters in Foreclosure: What Are Their Rights? Federal law gives important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial...
Where is the housing market going in 2013? Thanks to CBS News (MoneyWatch) The housing market in 2013 stands on a precipice. While there is hope that the slow, but real, housing recovery that took hold last year will continue, fear remains that a sudden economic dip...
The latest foreclosure horror: the zombie title By Michelle Conlin Thanks to Reuters. COLUMBUS, Ohio | Thu Jan 10, 2013 1:58pm EST (Reuters) - Joseph Keller doesn't expect he'll live to see the end of 2013. He blames the house at 190 Avondale Avenue. Five years ago,...
Foreclosure and Its Income Tax Consequences (TheNicheReport) — In a recent issue of The Niche Report I wrote an article on how to safely “walk away” from your mortgage. That article discussed consumer protection statutes, enacted by such states as California, known to...
Facing Foreclosure? You May Have Options If yours is one of the nation’s estimated 14 million troubled mortgages, it can seem as though you are running out of options. But help may be on the way: “Homeowners unable to meet their current mortgage payments may have a...
Mortgage wizard interviews Attorney Shawn Newman on foreclosure defense.
November 26, 2011 - New York Times Mr. Romney on Foreclosures Since the housing bubble began to burst six years ago, prices nationwide have fallen by a third. Nearly $7 trillion of home equity has been wiped out. Currently, some 14.7 million homeowners owe $700...
If I have to introduce Alabama foreclosure defense attorney Nick Wooten to you, then you’re not much of a foreclosure crisis news junkie, because Nick has made headlines for his lawsuits against the banksters on behalf of homeowners as much as anyone, and a lot more...
March 27, 2011 Today I got this email from Teresa, a real estate broker: James, I have a buyer with a good down payment. They make good money, but they are self-employed, have less than perfect credit, and are having problems getting financing. They have been looking...
SELLER FINANCING IS A FORM OF CREATIVE FINANCING I would like to say a few words about creative financing, also referred to as seller-financing, or a wrap-around deed of trust deal, or a lease-option deal. Creative financing includes seller financing, but it is a...
Sometimes we get lucky in real estate. We find the buyer or seller we want to do business with on our own.
Read the Hamp Handbook here. It will answer a lot of questions. Lenders may but are not required to reduce principal balances in a modification down to 115% of the principal balance owing. Lenders may not foreclose on a borrower who is in the process of modification...