Hi there, So I have been thinking and reading about what is currently going on with mortgages. As a seller, I am wondering if there is anything that can be done during these times to benefit both me and the buyer. In other words, carry the paper, bridge loan til things calm down, etc? My interest only loan is locked at 5.25% til 2010. Anxious to hear others thoughts on this?

No responses, surely someone has some input? Lease to loan, etc? Anyone?

You can try anything you want Pedro! Lease to own is good for people with no credit Offer to pay some closing costs maybe. Oh yeah - PRICE!

I think it's important to take a look and see if you really do in fact want to "sell." I don't know the exact statistics Pedro, but a very, very high percentage of the buyers on a contract for deed or rent to own do not purchase the property. In other words, they do not work on improving their credit and as a result, they can not get the end loan and purchase the property. The "seller" keeps the down payment money at that point and the contract generally gets renegotiated.

So in a nutshell, rent to own is great for the current owner, however, our team here in Minnesota has found most buyers do not understand how it really works.

With more difficulty in buyers being able to secure mortgages in this market, you most assuredly will be able to find a CD or rent to owner buyer.

I think it would be a great way for you to "weather" this market and cash flow as well.

I hope this helps!!

The most important thing in this market is realistic pricing, see how that will play out with what is owed. Because it's interest only and the market has been depreciating for so long it might not be possible to sell at this time. I would consult with a Realtor to find out your home's value and options you have.

Ryan O'neal suggests to make sure you want to sell right now. Seeing as the market keeps declining, it is probably in your best interest to sell now.

There is so much on the market now, more than I have ever seen in the 20 years I have been in this business. Find a Realtor who understands your market and how to price in your neighborhood. Pricing based on what the competition is doing is very important now, not just the sold comps. The days of multiple offers and bidding wars are over. The market is adjusting bac to normal, something many new Realtors who got their license during the boom, have never seen. So its important to find an agent that has been in the business awhile.

There are many forms of creative financing these days. You might consider carrying a contract for a short term and sell it to a hard money lender after closing. There is always the lease purchase, but offers from those buyers only seem to come in on properties that have sat on the market for a long time and are vacant. Many folks thinkng that mayb the seller would want a tenant to pay his mortgage for awhile. Also those buyers have very poor credit most of the time and hardly any money down.

The best thing to do is hire an experienced Realtor to counsel you and protect your interests. And don't just hire the first person that answers the phone. Talk to at least 3, ask for references, a resume and how many houses they have sold during their career.

Best Wishes!

S
www.susanbarlow.com

California is a VERY volatile market unlike markets like mine very we only move a few percentage points. Since you don't adjust until 2010 it might be better to hang out and see where the market goes in your area.

In these markets on thing is for sure pricing ahead of the curve relative to the condition of the property with the right exposure to potential buyers will get it SOLD.


If you don't have a serious reason for selling now is not the time to test the waters.If you have the ability to break even or take a small loss on the sale you might recover it and then some on the buying end.

No legal advice-consult a local professional to discuss your options in your current market.

There are tons of ways to help buyers but usually it is as simple as offering more/better house for less money and paying the closing costs. Is your home already on the market? If so, how long has it been on the market? It sounds like you are already a little frustrated or nervous you won't get your price if you are looking at carrying paper, etc. rather than reducing the price.
Maybe if you give more specific details about your situation, we could be more helpful. For example, how much is your balance at 5.25%? What is your sales price? Condition of the home? Days on the market? Comparable sales in the past 3 months? Comparable listings?

Lease to purchase is always headache, but price your house properly, offering to pay the closing cost, home insurance for one year.

suzieQ gave you great advise.