October 2012 Monthly Archive
October 27, 2012
A lot of sellers are using an owner financed real estate IOU to attract buyers willing to pay their asking price. Although the real estate market has experienced a slight upturn, finding qualified buyers remains a challenge.
When property owners secure loans with seller financed real estate IOU they act as the lender. A mortgage or trust deed is drawn up and filed with the County Recorder's office. If buyers default on the terms of the note the seller can initiate foreclosure and repossess the property.
Just as banks are allowed to sell mortgage notes to another bank, property owners can sell seller carry back trust deeds to private investors or investment groups. This is common practice amongst investors and is a good approach for those in need of quick cash.