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Example: Los Angeles, ca 90210 beverly hills, ocean view, designer home
State Type Price

ADVANTAGES FOR SELLERS TO PROVIDE CARRYBACK FINANCING

Higher Sales Price. The seller may be able to ask for a higher price because they are carrying the note and making it easier for a buyer to purchase the property.

Greater Pool of Potential Buyers. Buy using owner backed financing, the seller increases the number of prospective buyers who may be interested in purchasing the property. A number of people who use owner backed financing, may not be able to get conventional loans, especially in the current market. Some may be able to get a loan, but no for the full amount. So they would look for this kind of financing to help them achieve a purchase.

Higher Interest Rate. You can charge a higher percentage than the going rate.

Tax Breaks. The seller may pay less taxes, as they usually only have to report income received. Check with an accountant to see how this applies to you.

Monthly Income. This is income that is essentially guaranteed, assuming your buyer pays their note in a timely fashion.

As a measure of protection, many sellers open escrow accounts that buyers pay the mortgage into. In addition, the buyer places a Quite Claim Deed into the escrow account with instructions for the escrow officer to file it, if they are late within a certain number of days. Doing this restores the sellers ownership of the house. If this happens, the buyer loses both the house and any payments they made on the property. This usually helps ensure the buyer pays on time.