How does 100% seller financing really work? Do I go through the same process when closing a deal with a lender? Are there titles fees, etc? What are the steps I need to take to make sure everything gets recorded properly?
That’s a loaded question.
100% seller financing could mean the seller is financing the entire purchase price, and coming out of pocket to pay for all closing costs.
This is about as rare as hen’s teeth.
As a practical matter, if the buyer is asking the seller to finance the purchase price 100%, the buyer is also offering to pay for all closing costs. This way the seller isn’t coming out of pocket to sell his house.
In a sub2 transaction, as a buyer, I am often buying with 100% seller financing.
For example in a sub2 deal:
- I take over the seller’s loan balance.
- I might create a note for the seller’s remaining equity.
- I get the deed and pay for it’s recording.
- I check the title chain myself and don’t buy title insurance.
- I don’t buy with a real estate agents involved …ever.
Meantime, 100% seller financing doesn’t usually exist/work, when/if the seller has to come out of pocket to close the deal.
Otherwise, most sellers pay for what they’ve agreed to pay, out of the proceeds of the buyer’s loan.
Hope that helps.
Literal 100% seller financing is probably the most dysfunctional way of negotiating a 'no down payment" deal one could imagine.
However, “no down” is another story. This doesn’t require 100% seller participation in the financing.
There’s a WHOLE bunch of creative ways to buy with no down.
Learn those ways from Robert Allen. No Down Payment Formula, and other titles that include “no down.” Robert Allen is the KING of no down payment formulas, period. He’s got sophisticated and simple ways, depending on your situation, that are not only fascinating, but workable.
Look through my posts here that include “Robert Allen” and see what I have.
Hope that helps.
Good to hear from you again. Thanks for the input
Hen’s Teeth for sale…100% financing! :anon