Owner financing is an alternative method of seller your home, where you the homeowner enters into a mortgage contract with a buyer who wants to purchase your home. Owner financing usually yields full market price for the home and a good rate of return. Here are 6 ways to insure that your risk is minimized.

1. Collect a large cash down payment of at least 10%.

2. Seek additional security. If the buyer has part of the down payment and you feel comfortable that the buyer can pay the payments, as for additional security such as a car title that can be released after a short period of time, for example 2 or 3 years, if payments are made as agreed.

3. Obtain a credit report. Ask your buyer to provide you a copy of their credit report. They can get one online, sometimes for free. If there are some negative things on their credit report, it may be okay just be sure that to issue has been resolved and they have recovered financially from what caused the problem.

4. Trust your instincts. It has been proven time and time again that your first impression is usually the correct one. If you have a funny feeling about the situation, it may be best to walk away and find another buyer.

5. Look at the big picture. The buyer has found a lender that is willing to give them a mortgage for 90% of the homes value. They have agreed to allow the buyer to put 5% down if you hold a 5% second mortgage on the house. The big picture is you’ll receive 95% of the purchase price up front and the remainder in payments over say 5 years. Worst case scenario, you never get paid and foreclose on a home you were paid 95% on already.

6. Talk to an attorney. Determine what the foreclosure period is in your state. Each state sets different periods for foreclosure through the courts. Knowing these things can help you sell in the safest way.

Providing seller financing allows you to get the most money possible for your home. Be smart about it and this can be a winning transaction for you and the buyer.

Hubert Miles is the founder of Waterfront Houses USA, an online marketing service that provides Waterfront Homes and Waterfront Homes For Sale in the US and Canada.

Related Blogs

• Related Blogs on Finance

The Big Horn Mountains is the home of Powder Horn Golf Community, a luxury community in Sheridan, Wyoming offering beautiful mountain views, creekside settings, championship level golf course, tennis courts, and luxury residential homes and rentals.

In 2009, Golfweek magazine recognized the 27 hole championship golf course as one of the “Best Residential Golf Courses”. The course is suitable for all skill levels through five tee boxes which alter the length and difficulty of the course. The clubhouse is over 30,000 sq ft and features a pro shop with all the necessary equipment, supplies, and apparel. There is also a restaurant and bar, a meeting room, and large patio complete with fire pits.

The community features two tennis courts with a Nova Pro Bounce surface. There is an active tennis community that holds regular social events and tournaments. Players can get equipment, supplies, and lessons from the local pro shop.

Residents also have access to the resort style swimming pool, children’s pool, spa treatments, and a state of the art fitness center.

Outdoors men will enjoy the abundance of wildlife, trout fishing, and taking the boat out on the area rivers and lakes. Hiking, horseback riding, and ATVing the miles of trails in and around the community during the Summer. Winter activities include snow skiing, snowmobiling, and ice fishing.

The community is also close to national parks and landmarks including Yellowstone National Park and Mount Rushmore. Wyoming is a no personal State income tax state.

This master planned community has won many awards including: Designated National Audubon Cooperative Sanctuary; Travel and Leisure Golf’s “America’s Top 100 Golf Communities”; Mountain Living Magazine’s “Best Development in the High Country”; Where to Retire Magazine’s “Top 100 Master Planned Communities”.

Creekside, golf course, and mountain views are available on most home sites and homes for sale. There is no time restrictions on constructing your dream home. Custom homes are subject to height, size and setback regulations.

Low maintenance Deck Homes are available in 2 floor plan options. Patio Homes are available in 4 floor plan options. Cottages are available near all the community amenities offer 3 floor plan options.

Hubert Miles is the founder of Gated Communities USA which features the best Private Communities in the USA and Internationally. Find information on Golf Communities in Wyoming.

Related Blogs

• Related Blogs on Finance
• Check This Out