Here's A FSBO Note Sale Solution Using "OPM"!
A home can be sold FSBO, “for sale by owner”, for many reasons. Sometimes there just isn’t enough equity in the property to have it sold by professional Realtors. Insufficient equity means they could not afford to sell the house and pay the realtor’s commission. Another reason for a seller-conducted sale is the unwillingness of a bank or mortgage company to finance their property. Occasionally the circumstances in the market require the traditional lenders to adjust their underwriting criteria, and re-evaluate their goals and objectives. When that happens, even though the seller may have a typically good property appraisal, the banks may devalue the appraisal for various reasons. This practice is becoming more frequent due to the bad loans, foreclosures, and mortgage fraud that are so pervasive in the marketplace. The result of this practice by the lenders is financial backsliding of the property values that impact not only the house in question, but also the neighborhood. The most important thing for you to know is using the fsbo note sale strategy, you can still sell your house even if the banks and mortgage companies are unwilling to finance your property! Because we have become so conditioned to go along with the “program”, that statement bears repeating. Even if the banks and mortgage companies are unwilling to finance your property, you can still sell your house, fund your buyers, close your deal, and get cash at closing! Here is one example of how it can be done. These property sellers were forced to relocate due to job lay-offs and downsizing. The property is valued at $200,000 and the mortgage balance is $90,000. The instability in the housing market made it very difficult to get full price sale from conventional lenders. The sellers needed: The buyers, Bill and Barbara, offered to purchase the property at the appraised price, $200,000 if they could get a fsbo note with seller financing. They were new to the area and could not qualify with conventional lenders with the two year on the job requirement. They did have $20,000 for a down payment and their credit was very good. The buyers needed: Here are the details we agreed to with your fsbo note and mortgage: Remember these figures reflect monies to be collected from your fsbo note over the next 60 months. Because the money is received before the balloon note date it was even more valuable to the sellers because they received a large portion of the funds as monthly income. The seller got 47.50% cash at closing, and the discount was still only 7.77% including the costs of commissions. This is only one example of how a fsbo property can be financed. Each transaction is unique so the financing solution is always customized. We can do something similar for you or someone you may know. Just submit a Seller-Profile for a preliminary needs assessment. If you are a buyer that has been turned down by conventional lenders, but you have down payment money and the ability to pay a new mortgage, just complete a buyer-profile and submit it as soon as possible. NO BANKS NEEDED WHEN YOU SELL OR BUY!!Our E-book, "How To Sell Your House FAST In Good Or Bad Markets" gives you very special insights into the world of promissory notes and the Time Value Of Money. It's priced at only $14.95 for a limited time. Be sure to add a copy to your home library. You will be glad you did. It is available in an easy download. Details are at the link above.
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