Bob Tedeschi wrote his Sunday Times column this week on the topic of seller financing, an activity that has been in relative hibernation as rates have been low and bank money plentiful in recent years. As the story points out, though, there was a time back in the 1970s and 1980s, when borrowing costs were in the mid-teens, that seller financing was quite common–and often the only way to get a deal done. Lately, according the the National Association of Realtors, there has been renewed interest in seller financing. With prices still near historic highs despite a cooling market, sellers have been assuming a secondary position behind the traditional bank mortgage to bridge the downpayment gap that many buyers face. Seller financing is also common when one a property is changing hands between family members or a seller wants to spread out a large capital gain over time. Have any readers ever been on either side of a seller-financed deal? How did it work out?
When a Seller Finances the Sale [NY Times]
Photo from Rev Dan Catt