HELP: Should I Lease Or Just Sell Or Owner Finance

My husband and I are forced to sell due to being screwed by Nationwide. I need to sell my house ASAP. People keep asking me if I want to lease or finance myself. I don’t know what I should do or how to do this. We are not financially comfortable so I will need money to put down on my next house. If I ask for a down payment do I have to apply all of that money to the loan or can I just give them credit for it later? I am selling my house for $165,000, how much of a down payment do I ask for? I just need help with this hole thing if someone who knows can help. I need help as the seller. ALSO, if anyone knows a good lawyer so I can go after the a-holes who screwed me. I live outside Houston, TX. Thank you, jecarmona

It is hard to sue anyone and win these days. If you win that would be great but it will cost ten grand or better to get started. If you loose that would be horrible. People have jumped out of windows over stuff like this, Try to control the emotions and get rid of the property some way. The less you deal with it the less it hurts. If you still want to sue you may try a mediation where both parties are bound be the decision of a third party mediator. This will be far less expensive.

Hope i gave you a few ideas and good luck with it.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

Owner-finacing can be a quick way to sell your house, and will normally bring a price closer to, or at, your asking price.

In your case, since you need some cash from the sale for your next house, you may want to consider the following. Sell the house using owner-financing. At closing, arrange for the sale of some of the mortgage payments to a third party investor.

Here’s how it could work for you.

Terms to sell the property

  • Sale price $165,000
  • Down payment At least $16,500 (10%), the more the better
  • Interest rate 8%
  • Monthly Payment $1,089.64 (ammortized over 30 years)
  • Number of Payments 60
  • Ballloon Payment due in 60 months 141,178.74

Possibilities to sell your owner-financed mortgage
Option 1. Sell 60 monthly pmts of $1,089.64. You would receive roughly $45,000 from the investor after selling the property. Plus, you receive the balloon payment of $141,178.74 in 60 months from the person who bought your home.
Option 2. Sell 60 monhlty pmts and 1/2 of the balloon payment. You would receive roughly $87,000 from the investor after selling your home. Plus, you will receive 1/2 of the balloon payment, $70,589, in 60 months.

If you would like to discuss your situation, I would be happy to provide you with more accurate numbers. Send me an email to or call toll-free 866-407-7500.

Cap Financial

I have a question on Ryan’s reply. Your reply about owner financing is great information!!!
To be clear, are we talking about a property where the original mortgage has been paid off? If the seller had a mortgage still, would they be able to sell any of the payments with the new mortgage they create?

sherry’s office,

This strategy still works with an underlying mortgage in place.

When selling a portion of the new mortgage, you need to sell enough so that the underlying mortgage can be paid off, with an money remaing going to you.

In the example above, let’s assume the underlying mortgage balance is $65,000. Option 1 would not work since you would only receive $45,000 when selling the 60 monthly payments, not enough to pay off the $65,000 mortgage balance.

In this case you would choose Option 2, which pays $87,000, $65,000 goes to pay off the underlying mortgage and $22,000 would go to your pocket.

This strategy works for buyers and sellers. If you are trying to sell a property, or looking to acquire a property, feel free to contact me to discuss your options for using seller financing.


Thankyou Ryan, this info is worth a mint to me. I wondered though, could one still hold the original mortgage and still sell 60 months of payments to an investor, after finding someone to lease option? Say one could add 3 or 4 hundred to the monthly payment, and there’s $55,000 equity in the property. Mortgage payoff is $69,000. Can that still work?

Sherry’s office

If I understand correctly, there would not be 60 mortgage payments to sell to our investor because the property has not been sold, only leased w/ an option to purchase.

You would only be able to sell mortgage payments due to you on a mortgage loan you make to a buyer. If you decide to sell a portion of the payments, my investors would require that enough of the loan be sold so that the $69k underlying mortgage is paid off and the lien removed.

Ryan Shoemaker
Mortgage Investment Specialist
Cap Financial

Call today for a free quote on selling a mortgage you hold or one that you plan to present to a seller.

Okay, thankyou!!!

If your lease option, the most you can get on option consideration is 5% of sales price.

However, if you sell via contract for deed, you can get 10% down–$16,500 and sell at a highre sales price and interest rate.

If you need help with contracts, let me know.