Canadians Selling Their Arizona Real Estate with “Seller Financing” and “Owner Carry”
“Seller financing” and “owner carry” are two terms that basically mean the same thing. Put simply, this type of financing happens when the seller of a real estate finances the purchase for a buyer rather than the buyer having to go through a bank to get a traditional mortgage. These are a good option for both parties if done properly. Unfortunately, these types of deals can also turn out very badly if one or both parties fail to understand the terms of the agreement. There are a variety of different types of seller financing agreements, but they essentially all work in the same basic way.
The advantage for Canadians selling their Arizona real estate using seller financing or an owner carry agreement is that they are more likely to find buyers. After the recent collapse in the housing market, many banks have been hesitant to loan money to individuals that would have qualified for a mortgage only a few years ago. For buyers that qualify for a mortgage, they may have found that the stringent guidelines put in place by the bank make it too much of a hassle to go the traditional route when it comes to securing a loan. Another advantage is the fact that it is often possible to get into a home with a lower down payment using seller financing.
In order for this type of agreement to work, the Canadian seller often will rely on a third party to enforce the agreed-upon contract. In a private mortgage, the deed to the property is generally transferred to the buyer. In contrast, during an owner carry financing, a third-party often holds the deed until the buyer has fully paid for the property or has secured financing of their own. Depending on the agreement, the buyer may be able to refinance the loan through a bank at any time or only at agreed-upon intervals.
Many of the risks associated with selling Arizona real estate using a seller financing plan can be eliminated or reduced if both parties perform thorough background checks on one another. It is also important for the buyer to thoroughly investigate the property in order to ensure that there are no hidden problems that will be discovered after a contract has been signed. Canadians selling their Arizona real estate with seller financing or owner carry should also perform a credit check on potential buyers and check to make sure that they are current on both their tax bills and mortgage.
Arizona Investment Link is the TOP Foreclosure Auction Bidding Service in Arizona for Arizona Real Estate.They specialize in providing Wholesale Arizona Real Estate for Canadians. To learn more, visit http://arizonarealestate4canadians.com/ today!
