Holding A Mortgage Question
Question: What are the risks of holding a mortgage for a buyer and would you recommend it. Have the opportunity to sell a house for $245,000. Buyer will put down $160,000 cash and pay $4,000 per month for 21 months on the balance of $85,000. Opinions appreciated for protecting yourself to avoid problems if the buyer defaults.
Answer: That may be a good risk. The buyer is putting a substantial interest in the property. I would check with a real estate attorney to see what documents need to be filed to provide you with maximum protection. You may wish to sell the paper to cash yourself out, and pass on any “risks” to the buyer of your mortgage.
MidWest Notes is a primary buyer/dealer of mortgages such as yours. Please contact us if you wish too discuss this further.Did you know that using an owner finance note that is sold at close for cash may be a solid way to facilitate some of your transactions?
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