Seller Financed Notes Have Extra Risk Over A Traditional Mortgage

If someone is contemplating issuing seller financing for a property there are a few things they need to take into consideration. While this type of financing, often called owner financing, is wonderful to maximize the earning potential of a piece of property it carries with it certain risks a traditional mortgage does not. Great care must be taken in selecting and approving someone for a seller financed note or the dreams of potential returns will turn into legal and collection nightmares.

Most people consider seller financing when they have a buyer who does not have a traditionally verifiable income. This is the case with many people who are self employed. While these people are wonderful people and do have tax returns to prove their income some of these candidates are not the most savory individuals, which is why they cannot qualify for a traditional loan. For the seller who is thinking about going down this road caution is recommended.

First, get a credit score pulled from all three of the cre More info: Seller Financed Notes

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