seller my home, owner finance, help what to do

hi all, please help me with this issue. i am trying to sell my house to a tenant, she’s not capable of doing it conventional way. she has ask for owner finance. i told her that will look into it.

here is the story, i still own 60k the house is selling for 151k. what interest shoud i ask for? is there an lawyer locally that i can talk to? what happen if they can’t pay, say after 1 year? how do i proceed in forclosure? is this worthwhile? should i just kick them out and sell it to someone else? please please help… thanks



Take a breath bud. Ok here we go. Hope you like making money. Here is a way to sell your house, save your buyer money, and get the existing mortgage cleared up.

You both need to decide on a sales price. Once that is done then you need to get 5% down. Typically a good note that is marketable to private buyers of notes like to see credit scores in the 600 range, 8-10% interest rate, and a standard 30 yr term of the note. If they fall into this category then you will have created a good note. You are curious as to…what happens if they don’t pay, foreclosure, might as well throw BK in there. If you sell your note to a private buyer during the same time your closing on this house you don’t have to worry about that. This is called a simulataneous closing. You will have to take a small discount on the note but you will get your cash, be free and clear of the property, and not have to worry about the above. Nice huh? Plus your buyer doesn’t have to pay originations fees, junk fees, PMI, etc. etc. saving them thousands.

So here is an example of how this deal could work.

Sales price 150K
5% down= 7500
Note balance=142500
You sell the note balance to a private buyer for 90 cents on the dollar. This is a ball park figure. Could be higher if your note is strong. Could be lower if its weaker. 90 cents on the dollar is 128,250 So you would get the downpayment 7500+128,250=135,750

The stronger you make the note the less of a discount. It usually takes 2-3 weeks to get these deals done. The existing mortgage is paid off from the sale of the house so don’t fret. A knowledgable RE lawyer is a must. Just network a little, call around, and see what you get.

Nate Andree

Is she credit unworthy or down payment poor? there are many programs available, and creativity is key! In fact there are many charitable gifting agencies that will “donate” the down payment, and you would credit it back at closing. This could be a tax positive for you because you will be making a donation at closing to a non-profit entity! check with your CPA. It’s a great tool for getting from point A-Z with very little effort and usually the least path of resistance.

If you go the note funding route go to and put in your info and you will get a free quote. If you go to Michael Morringello is the site moderator and he is an expert in note buying.
Read his stuff and post there since he can help you. His company is Sunwest mortgage. If he could not then Im sure he can direct you in the right direction.
I believe they move quickly one they have your buyers information at hand.
Good Luck to ya…

I have an interesting (I think its interesting) about notebuying. I located a property listing that I liked and wanted to have a closer look it. I contacted the listing realter and found out that the owner was a lady who obvisously had had one too many tenants abuse her property and her verbally that she wanted to get shed of it. The problem was that she had spent tons of money due to bad advise rehabing a 25 year old MH that resulted in zero return because banks will not write loans against a 25 yr old MH and land only loans fell short of her asking price and required 25% down. I was interested in getting financing then renting out, creating a small cash flow) for 5 or 10 years then maybe burn down the MH and build a small cabin home for the wife and me to live.

I told realter that I would give 75% of asking price cash or 100% if she would owner finance all. Owner said no she wanted 100% cash. I contacted seller direct and tried to get her to allow me to bring a notebuyer (I had no idea where to get one ) they would purchase her owner financed paper she would get her selling price. I only put 10% of my money in I knew that the numbers would have to be changed in order to work it out but thought it was doable. She freaked on me treathen to call law called me a scam artist. I understood why she did that. Old lady been scamed by contractor and bad tenants and me going around her realtor with a backsided deal that would have been, was way out of her line of thinking…I would have thought it a scam too if I was approched with it.

I know I screwed that deal up due to the way I approched her and very little knowledge myselff My question is… Is there a doable way, as a buyer, to approch a notebuyer, to offer a seller, that has contracted a realtor, and propose that owner draw-up owner finance papers to be sold to notebuyer with simo closing

Could that be illegal somehow? What about the realtors position? They are wanting there commission too.

Why is it that the seller of the house who’s selling his note for a discount would be responsible for using his funds to go back and pay off the 60K? Wouldnt it be the responsibility of the buyer to pay off that 60K? I mean his name should be off the title…?? I guess I’m just really confused…??


If they don’t qualify to buy it conventional, try unconventional. Any good broker should be able to get financing for someone who is working, has paid rent on time, and has a credit score of 575 or higher. If they have no credit score FHA is a possiblity.