Reasons to Consider Owner Financing in Albuquerque

Buying or selling a home is usually the most significant investment decision most people will ever consider, which will in most cases involve some financing options. Owner financing is an alternative to traditional mortgages. Owner financing is when a property is sold directly from the seller to the buyer with no finance intermediary like a mortgage lender or bank. Whether you are buying or selling a property, there are many cost-saving reasons to consider owner financing to purchase and sell residential and commercial properties.

Also called seller financing, the owner financing process involves the seller of the property extending credit to the buyer to purchase the property, with the buyer agreeing to make payments directly to the seller until the property is paid in full.

Owner Financing Can Benefit Both Buyer and Seller

Owner financing can be a risky option for both the buyer and the seller, but the potential upsides are worth the risk for many people. Understanding the reasons to consider owner financing in Albuquerque will help prospective property sellers and buyers make the right choices for their particular circumstances.

Whenever participating in such a large purchase, especially without the backing of a bank or other moneylender, both sides should seek legal counsel to make sure the contract is drafted agreeably in the best interests of both parties, on a short-term and long-term basis.

Benefits of Owner Financing for Buyers in Albuquerque

• Without having to wait for a financial institution to go through the lengthy and complicated application process, owner financing offers a faster closing for buyers.
• A lack of bank fees and appraisal costs will reduce closing costs.
• There are no required minimums mandated by a bank or regulations, which means total flexibility for a down payment agreement with the seller.
• Ideal alternative for buyers unable to secure a mortgage through traditional means.

Benefits of Owner Financing for Sellers in Albuquerque

• Property can sell without costly repairs that a bank would require before approval of a loan.
• It is a solid return on investment that will outperform other investment opportunities
• The buyer’s promissory note may be sold for a lump-sum payment.
• Seller retains the property title. If the buyer defaults, the seller keeps the down payment, any payments made, as well as the house.
• Avoiding the mortgage process allows sellers to move properties quicker.

Property Owners Can Trust Owner Financing in Albuquerque

A valuable tool to use when purchasing real estate, owner financing allows you to buy property without borrowing money through a money lender or bank. Owner financing can save both the buyer and the seller time and money. Both parties come together to agree on the terms of the sale and work out a payment plan until the property is paid off.

Learn More

If you are in the market to purchase property and are interested in whether owner financing might be right for you, contact a member of the Sunwest Escrow team today!

Original Source: https://sunwestescrow.blogspot.com/2019/11/reasons-to-consider-owner-financing-in.html

Does Owner Financing Affect Credit?

Owner Financing is Often the Best Option When Buying a New Home, Land Plot or Business Property…But How Does that Affect Your Overall Credit and Credit Score?

Sunwest Escrow, LC of Albuquerque, New Mexico is an Expert Facilitator of Secure and Safe Seller Financed Agreements. Their service of negotiating contracts, managing critical documents, and recording historical payment transactions are imperative when securing an owner-financed loan. But this is only part of the overall story associated with owner financing. So how does ‘credit’ play a part in that story?

Let’s start with the basics – What is Owner Financing?

Buying a new home, land plot, or business property is a huge investment. Given the large cost associated with the purchase, this transaction is almost always financed in some way or another. Owner financing also referred to as ‘seller financing’, happens when a home buyer is financed directly through the seller instead of a conventional bank or mortgage lender. The seller extends a line of credit to the buyer which covers the purchase of the home or property, less any down payment made by the buyer. The buyer then makes regular payments to the seller until the amount is paid in full.

If I have an owner-financed mortgage or loan, how does it affect my credit?

If you have found a home that you love, owner financing might be the answer for you. Owner-financed mortgages, however, might not end up on your credit report. Why is this?

With few exceptions, banks and traditional mortgage lenders report home and property loans as a standard monthly practice. The credit bureaus require that lenders meet certain financial standards before they can report a loan. Reporting lenders generally have to be a business, meet certain compliance measures or provide proof of the mortgage. If your lender isn’t a business, the mortgage might not be able to be reported.

That being said, if your ‘Owner-Financed Lender’ meets the credit bureaus’ minimum standards for reporting, you could be able to have your mortgage reported. Ask your lender if they are willing to fill out the paperwork necessary to report the mortgage.

Defaulting on your owner-financed mortgage can affect your credit…

Although your owner-financed mortgage or loan might not be reported to the credit bureaus, if you default on your loan it can still have a negative impact on your overall credit. By not paying your mortgage, your lender has the right to pursue your debt through legal channels and can garner a judgement against you, which does end up on your credit report. They can also turn their claim over to a collection agency and these companies are notorious for reporting to the credit bureaus.

So as you can see, even if your mortgage is not registered with the credit bureaus, defaulting on your owner-financed loan can still have serious repercussions.

The team at Sunwest Escrow, LC are experts at facilitating and implementing all of the necessary legal safeguards and contractual arrangements associated with an owner-financed loan or mortgage. Whether you are the buyer or the seller, as a third-party escrow company we work to secure owner-financed mortgages that are in the best interest of both parties involved.

Contact Sunwest Escrow, LC Today at 505-237-2225 or Email Us.

Original content posted on https://www.sunwestescrow.com/news/owner-financing-affect-credit.html

How Does Owner Financing Work?

For Sale By Owner — you’ve seen the signs outside of dozens of New Mexico homes. These signs tell you that the home is for sale, however, what many homeowners and homebuyers don’t know is that FSBO homes are a little different than traditional home sales. One aspect of this transaction that is different is the concept of owner financing. At Sunwest Escrow, Albuquerque, we believe that both homebuyers and homeowners should be aware of all elements involved in a For Sale By Owner home. That’s why we’ve created this helpful explanation that covers an important topic — owner financing.

How Does Owner Financing Work?

Both the homebuyer and the homeowner have many options to consider when determining how the property will be financed. As one of the largest financial decisions that an individual makes throughout their life, it’s important that you consider all options thoroughly before making a final choice. Owner financing is an option that is appealing to both parties for a number of reasons.

The concept is also known or referred to by other names — seller financing, owner carried financing, owner carryback, and the owner will carry. Regardless of which term is used, they all represent the same concept. Unlike a traditional home sale in which the buyer borrows money from a financial institution like a bank or lender, owner financing provides an alternative option. Instead of obtaining a mortgage from the bank, the homebuyer goes directly to the owner and receives credit from them. The buyer then makes payments to the seller, in addition to the initial down payment to purchase the property.

This concept presents advantages for both parties. For buyers, it gives them the opportunity to close the home faster. With no bank affiliation, this close is often cheaper as well. It’s also a perfect opportunity for buyers who cannot secure a mortgage, or who require flexible payments, to purchase a home. For sellers, it enables them to retain the title of the home if the buyer defaults. It also allows the seller to sell the home as is which saves them time and money.

Scheduling an appointment with Sunwest Escrow today and learn more about the various advantages of owner financing in Albuquerque.

Original Source- https://sunwestescrow.blogspot.com/2019/05/how-does-owner-financing-work.html