Charleston Home Buyers: Bank loans take time and much more difficult to get these days. Since the housing boom went bust, they are much more difficult to get and many deserving and capable people are being left out of the home ownership dream. They can provide you with a steady monthly income, won’t require your services as a landlord, will make their own repairs, and if they default the property comes back to you.
If you have property to sell and wish to sell it fast, check out the possibility of carrying the paper on your own property. This works especially well if you own the property free and clear because you don’t have to be concerned about paying the mortgage payment on the house if your buyer is late or can’t pay.
When you advertise owner carry you will receive communication from people who would love to own a home and are unable to get a loan from the bank. Though they may be too much risk for the bank’s stringent new requirements, they may be perfectly able to make a monthly payment to you just as they were paying steady rental payments.
The risk may be minimal to you depending on how you set up the contract. If the buyer defaults and you have a clause in the contract that states you will end the contract in that case, you will receive the house back as well as the down payment that was made and any improvements they happen to have made in the meantime. Those that own their own home are much more likely to make improvements and take good care of a home than those that are renting.
There is great benefit to both the seller and the buyer in the case of owner carry contracts. The buyer can obtain a home, which is a much better investment than paying rent, and at the contract’s end, will own the property. The seller will enjoy a much faster potential sale of the property since the lenders are not involved in the process.
The downside of this scenario for the owner/seller/lender is that the buyers may default on the loan at some point. When that occurs there may be some lengthy procedures that occur, but at the end of the process, you would once own the property and would put it back on the market for sale. The advantage to this is the speed at which you can implement the sale of the property.
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