Are your selling your own Silicon Valley home? Are you interested in reaching a broad range of buyers? Well, despite the housing recovery in most markets, lenders are still being very tight on credit and putting borrowers through the ringer for approval. So, if you are interested in selling your own home in Silicon Valley including San Jose, Campbell, Los Gatos, Saratoga, Los Altos then you might consider seller financing to ease the challenge some buyers face their loan approval.
Seller financing increases your pool of potential buyers. There is a great deal of flexibility with payment options, depending on your and the buyer’s needs:
- The down payment can be small.
- Buyers usually pays a monthly fee for the 2nd lien you have on the property for a specified term with a balloon payment due on or before a certain date.
- You can charge a higher interest rate but be careful not to violate your state’s usury laws.
There are two common options for creating a seller financing plan for a real estate transactions. One is for the buyer to agree on a promissory note that details the repayment terms. With this option a Deed of Trust is recorded and the ownership is transferred to the buyer. The second option is for both parties to enter into a Real Estate or Land Contract which is recorded. The difference between the 2 options is that on the Land Contract, the title of the property is not transferred to the buyer untill all the payments on the note has been paid to the seller.
A real estate or Land Contract then is a preferred option if you are concerned about default where your buyers might not make the payments on the loan. WIth the Land Contract in place, there is no need for you to foreclose since you are still on title.
Contact Us if you are interested in selling your Silicon Valley home.