Real Estate Pros
Helping Sellers Get Un-Stuck!
If you haven’t already, you will surely run across sellers who feel stuck. They’re ready to sell or move, but their existing mortgage involves constraints requiring it to remain open longer.
Creative Financing (especially Subject To Financing) provides the tools you need to help these sellers get unstuck and move forward. And it allows them to do so without the stress or penalties that arise in sales funded by traditional finance.
Before we dive in, we always want to let realtors know that Creative Financing can (and should) be implemented correctly so that all 3 of the following are maintained:
We’re here to support you as a professional, bringing you resources and options to help your sellers achieve their goals. And we’re aiming to foster long-term relationships with quality professionals because we brought real value to them and to their sellers.
Several mortgage innovations have been created to help broaden buyers’ access to home ownership. These often come in the form of government-sponsored or lender-sponsored grants funding a Down Payment Assistance Program or Forgivable Seconds (2ndmortgages that do not require repayment after a certain number of years).
These are great programs to help people get into a home, but they don’t always provide exit paths if they need to move in the first few years. Programs like these use a variety of penalties or deferred benefits to incentivize homeowners to stay put and build equity.
What about the homebuyer who gets transferred for work, goes through a divorce, or needs to move to care for an aging parent? They may need to move but feel trapped.
Subject To Financing could free up these homeowners with an option to sell without the same penalties.
Other homeowners may have used a government mortgage program that required little or no down payment (FHA, USDA, or VA). Again, these are great opportunities to get into a home, but they may complicate a homeowner's ability to sell. If they end up needing to sell and move sooner than they expected, they may not have had time to build up the equity needed to cover the costs of a traditional sale.
Once again, Subject To Financing might provide these sellers with a structure that relieves that burden.
Subject To Financing can be used when homeowners feel stuck and unable to sell. It can also be used by sellers leveraging it more strategically in negotiations or as a taxation and asset strategy.
You’re the market expert; our goal is to support you by offering solutions to present to your sellers when it makes sense. You’re right to take seriously your role faithfully guiding clients to the best option for them, and you should be paid for your expertise. They’re lucky to have you!
We want to provide you with quality information and resources. You can read more of our content, or simply reach out and start a conversation to learn more.
