Seller Finance Consulting email or Call: 623-925-5634 The glut of unsold properties on the market, the shortage of conventional funding sources, and worsening economic conditions are creating a phenomenal upswing in seller financing, the likes of which I’ve never seen in years in this industry.
The recent collapse of many banks and mortgage companies has had a phenomenal effect on lending practices and, consequently, on real estate activity. Lending institutions have tightened their underwriting criteria drastically, making it far more difficult for borrowers to qualify for loans. Many applicants who would have received conventional loans just two or three years ago are now being rejected. Considerable number of these candidates are “just missed” borrowers who fall narrowly outside the newer, stricter lending criteria. These are reliable, low-risk prospects who demonstrate the ability to meet the terms of their loans. And they have every intention to do so.
In addition, fewer funds are available for lending, which has created a supply-and-demand problem. Traditional lenders now reserve their limited assets for their most credit-worthy candidates. Now more and more, even the low-risk borrowers are now turning to seller financing.
The quality of the average seller-finance candidate has improved greatly while the demand for seller financing has soared. Done right, seller financing has become a safe bet.
Are eager to finance the sales but don’t know how to structure a quality note.
Seller Finance Consulting email or Call: 623-925-5634 our expert note-manufacture.
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